Got My Tools

ROI Calculator

Enter what you invested, what it's worth now, and how long you held it to calculate total return on investment and an annualized rate for fair comparison.

Net gain / loss

+$6,000.00

Return on investment (ROI)

+60.00%

Annualized return (CAGR)

+12.47%

ROI measures total return over the whole period. Annualized return (CAGR) spreads that same return evenly across each year, which makes it easier to compare investments held for different lengths of time.

The formulas, in plain language

ROI % = (Final value − Initial investment) / Initial investment × 100

Annualized return % = [(Final value / Initial investment)^(1/years) − 1] × 100

Worked example

Suppose you invested $10,000 and it's now worth $16,000, over 4 years:

  • Net gain: $16,000 − $10,000 = $6,000
  • ROI: $6,000 ÷ $10,000 × 100 = 60%
  • Annualized return: (16,000/10,000)^(1/4) − 1 = about 12.47% per year

The 60% figure is the total return over all 4 years combined; the 12.47% figure is what that same growth looks like spread evenly across each year — useful for comparing against, say, a savings account's annual rate.

Frequently asked questions

What's the difference between ROI and annualized return?+

ROI is your total return over the whole holding period, with no regard for how long that period was. Annualized return (CAGR) spreads that same total return evenly across each year, which is what makes it possible to fairly compare, say, a 60% return over 4 years against a 20% return over 1 year.

Can ROI be negative?+

Yes — if the final value is lower than what you initially invested, both the net gain and ROI will be negative, reflecting a loss.

Does this account for fees, taxes, or additional contributions?+

No — it's a simple two-point calculation (initial value vs. final value) and doesn't account for fees, taxes on gains, or any money added or withdrawn along the way. For investments with regular contributions, a compound interest or savings goal calculator will give a more accurate picture.

What counts as 'final value'?+

Whatever the investment is worth now (or when you sold it), including any price appreciation. If you received dividends or other cash distributions along the way and want those counted too, add them to the final value before entering it.

Not financial advice. This calculator is provided for general educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Results are estimates based on the assumptions you enter and may not reflect actual returns, fees, or taxes. Consult a qualified financial professional before making decisions based on this information.