Finance
ROI (return on investment) calculator
See the return on an investment. Enter what you put in and what it became to get the net gain, total ROI, and an annualized rate for fair comparison.
- Net gain
- $500.00
- Total ROI
- 50.0%
- Annualized ROI
- 14.5%
Total ROI is the whole-period return: (final − initial) ÷ initial. Annualized ROI spreads that return evenly across the years held, so investments over different time spans can be compared fairly. Educational only — not investment advice.
Total ROI vs annualized ROI
Total ROI answers “how much did this grow overall?” while annualized ROI answers “how much per year?” The second is what lets you compare a quick win against a slow, steady grower on equal terms. A big total return earned over many years may be less impressive, per year, than a smaller one earned quickly — and vice versa.
The force behind long-term returns
Annualized returns compound over time — the difference between simple and compound interest. To learn how investing, risk, and returns really work, explore the Finance subject. This tool is educational and not investment advice.
Frequently asked questions
- How do you calculate ROI?
- Return on investment is the net gain divided by the initial cost, times 100. Turn $1,000 into $1,500 and the $500 gain ÷ $1,000 = 50% ROI. This tool also shows the annualized figure so investments over different time spans compare fairly.
- What is annualized ROI, and why does it matter?
- Annualized ROI spreads the total return evenly across the years held. A 50% total return over three years is only about 14% per year — very different from earning 50% in a single year. Comparing total ROI across different time periods can be misleading, which is why annualizing helps.
- What counts as a good ROI?
- There’s no universal number — it depends on the risk, the time frame, and the alternatives. A higher ROI often comes with higher risk. This calculator is for education only and is not investment advice; consult a qualified professional for decisions about your money.
- Is it free and private?
- Yes — nothing is stored and there’s no sign-up. It all runs in your browser.