Enter the amount invested and the final value to get your return on investment as a percentage, plus annualized ROI.
The method behind this calculator
Return on investment measures how much you gained relative to what you put in. Enter your cost and the final value and this calculator returns the net profit and ROI, plus an annualized rate if you add a holding period.
Annualizing lets you compare investments held for different lengths of time on an equal footing.
Step by step
- Enter the amount invested.
- Enter the final value.
- Add the holding period in years for the annualized ROI.
Formula reference
ROI = (final − cost) ÷ cost × 100
annualized = ((final ÷ cost)^(1/years) − 1) × 100
Worked example
As an example, with a holding period of 2, the calculator returns a return on investment of 30%. Underneath, Net profit comes out at $3,000 and ROI at 30%. Change any field and every figure updates as you type.
Frequently asked questions
How is ROI calculated?
Subtract the cost from the final value, divide by the cost, and multiply by 100. A $10,000 investment worth $13,000 has a 30% ROI.
What is annualized ROI?
It expresses the total return as an equivalent yearly rate, so investments held for different periods can be compared fairly.
Does ROI account for risk?
No — it measures return only. Two investments with the same ROI can carry very different risk. This isn’t financial advice.