ROI Calculator

What this ROI calculator does

Return on investment, or ROI, compares the gain from an investment with the amount invested. This calculator reports the investment gain, the total ROI, and the annualized ROI. You can enter the holding period as two dates or as a number of years.

ROI is a simple performance measure. It does not account for risk, taxes, fees, or the timing of cash flows within the holding period. Use it as a starting point and combine it with other measures when comparing investments.

How to use this calculator

1. Enter the amount invested.
2. Enter the amount returned, including any proceeds or ending value.
3. Choose Use Dates and enter the start and end dates, or choose Use Length and enter the number of years.
4. Click Calculate.

The default example invests $1,000 and returns $2,000 over the period from November 2, 2026 to December 31, 2030. The result is a $1,000 gain, a 100% ROI, and an 18.12% annualized ROI over about 4.162 years.

ROI formula

Investment gain = Amount returned − Amount invested
ROI = Investment gain / Amount invested × 100
Annualized ROI = ((1 + ROI / 100)^(1 / years) − 1) × 100

The annualized figure converts the total return into a compound annual rate. It is useful when comparing investments with different holding periods.

When you use dates, the calculator measures the number of days between the two dates and divides by 365.25 to estimate years.

What the results include

• Investment gain: the difference between the amount returned and the amount invested.
• ROI: the total return as a percentage of the amount invested.
• Annualized ROI: the compound annual rate implied by the total return and holding period.
• Investment length: the holding period in years.

Assumptions and limitations

The calculator assumes a single investment at the start and a single ending value. It does not model dividends, interest, fees, taxes, or additional contributions during the period. A loss reduces the gain and can make the total ROI negative. Annualized ROI is not defined when the investment loses 100% or more.

Frequently asked questions

What is a good ROI?

There is no universal answer. A good ROI depends on the investment's risk, the holding period, and the returns available from alternatives. A higher ROI is generally better only when the risk is comparable.

Why is annualized ROI different from total ROI?

Total ROI measures the entire holding period. Annualized ROI spreads the return over time as a compound annual rate, which makes investments with different lengths easier to compare.

Does ROI include dividends or interest?

Only if you include those payments in the amount returned. The calculator does not separately track income, fees, or taxes.

Can annualized ROI be negative?

Yes. If the investment loses money but does not lose everything, the annualized return is negative. If the loss is 100% or more, the annualized calculation is undefined.

Source

References:

• Investor.gov — Return on Investment (ROI)
• Consumer Financial Protection Bureau — Saving

Disclaimer

This calculator is for informational and educational purposes only. It is not investment advice. Past performance does not guarantee future results.