ROI Calculator
Calculate return on investment as a percentage and annualized rate.
How to use ROI Calculator
- Enter your initial investment amount.
- Enter the final value (what it's worth now, or what you sold it for).
- Optionally enter how long you held the investment to see the annualized return.
- Your ROI percentage and annualized return update instantly.
About this tool
The ROI Calculator measures how profitable an investment was — as a simple percentage return, and as an annualized rate that accounts for how long you held it, so a 20% return over 1 year and a 20% return over 5 years can be fairly compared. Works for any investment: stocks, real estate, a business, or a side project. All calculations run instantly in your browser — nothing is uploaded or sent to a server.
Frequently Asked Questions
How is ROI calculated?
ROI = (Final Value − Initial Investment) ÷ Initial Investment × 100. For example, turning $1,000 into $1,300 is a 30% ROI.
What is annualized return and why does it matter?
Annualized return spreads your total ROI evenly across the holding period, using the formula (Final ÷ Initial)^(1/years) − 1. It lets you fairly compare a 30% return earned in 1 year against a 30% return earned over 5 years — the first is a much better rate of return.
Does ROI account for fees, taxes, or dividends?
Not automatically — this calculates ROI purely from the initial and final values you enter. To include fees or dividends, add or subtract them from your final value before entering it.