ROI Calculator
Turning 10,000 into 15,000 is a profit of 5000 and a 50% ROI. Over 3 years that is an annualized return of 14.47%.
How to use
- Enter the amount you invested and what it is worth now or when you sold.
- Optional: enter how long you held it and choose years, months or days to see the annualized return.
- Read the ROI, the profit or loss, the multiple of your money and the annualized return.
How it works
ROI = (final value − initial investment) ÷ initial investment × 100. Net profit = final value − initial investment.
Annualized return = (final value ÷ initial investment)^(1 ÷ years) − 1. It is the steady yearly rate that would produce the same growth with compounding.
Months are divided by 12 and days by 365. A total loss of the money is a return of −100%. Annualized return is not defined when the final value is negative.
Include any fees, interest paid or income received in the initial and final values, so the figure reflects what you actually earned.
FAQ
What is a good ROI?
It depends on the risk and how long you waited. Compare annualized returns, not total ROI, because 50% over 10 years is much less impressive than 50% in one.
Why is annualized return lower than ROI divided by years?
Because of compounding. 100% over 5 years is 14.87% a year, not 20%, since each year's gain also earns a gain.
What does a multiple of 1.5x mean?
The final value is 1.5 times the starting amount, which is a 50% ROI.
Does ROI account for inflation or tax?
No. It is a plain percentage of gain. Subtract taxes and fees from the final value yourself, and compare with inflation if you want a real return.