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ROI Calculator

Calculate return on investment and the annualized return (CAGR).

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$
$
years

Add a period to see the annualized return (CAGR).

Enter your values to see the result.

Past returns do not guarantee future results. This calculator does not account for taxes, fees or inflation unless you include them in the amounts.

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How this calculation works

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Formula
ROI % = (final value − initial investment) / initial investment × 100. Annualized return uses the growth ratio raised to 1 / years, minus 1.
Variables
  • Amount invested
  • Amount returned (final value)
  • Investment period (optional). Add a period to see the annualized return (CAGR).
Units
  • Investment period (optional): years
  • Use the same selected currency for all monetary inputs. Changing the symbol does not convert exchange rates.
Example
Investing $10,000 and ending with $14,500 is a 45% ROI. Over 3 years, that is an annualized return of about 13.2% a year.
Assumptions
Past returns do not guarantee future results. This calculator does not account for taxes, fees or inflation unless you include them in the amounts.
Source
ToolzHive calculation guide and calculator implementation. External reference verification is pending.
Last reviewed
Review date not yet recorded.

Methodology & References

The method depends on the selected model and input options. Review the assumptions and references above before interpreting the result.

  1. Enter the amount you invested and the amount you got back, or the investment's current value.
  2. Optionally, enter how many years you held it.
  3. Read the ROI, net profit and annualized return.

Interpretation and limitations

  • What is a good ROI? It depends on the risk and time. Broad stock market indexes have historically returned roughly 7–10% a year over long periods, but past performance does not guarantee future returns.
  • Why use annualized ROI? A 45% return over 3 years and a 30% return over 1 year are hard to compare. Annualizing turns both into a yearly rate.
  • Should I include fees and taxes? Yes. For a realistic ROI, subtract fees, commissions and taxes from the amount returned, or add them to the amount invested.

References

External reference verification is pending. The formula and examples describe the current ToolzHive implementation.

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Clear instructions

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How to use the ROI Calculator

Return on investment (ROI) measures how much you gained or lost compared with what you put in. This calculator shows your ROI percentage and net profit, and, if you add how long you held the investment, the annualized return or CAGR (compound annual growth rate). Annualized returns let you fairly compare investments held for different lengths of time.

  1. 1 Enter the amount you invested and the amount you got back, or the investment's current value.
  2. 2 Optionally, enter how many years you held it.
  3. 3 Read the ROI, net profit and annualized return.

Example and practical tips

Investing $10,000 and ending with $14,500 is a 45% ROI. Over 3 years, that is an annualized return of about 13.2% a year.

Frequently asked questions

What is a good ROI?

It depends on the risk and time. Broad stock market indexes have historically returned roughly 7–10% a year over long periods, but past performance does not guarantee future returns.

Why use annualized ROI?

A 45% return over 3 years and a 30% return over 1 year are hard to compare. Annualizing turns both into a yearly rate.

Should I include fees and taxes?

Yes. For a realistic ROI, subtract fees, commissions and taxes from the amount returned, or add them to the amount invested.

  • How to Use ROI Calculator

    Calculate return on investment (ROI) as a percentage, your net profit or loss, and the annualized return (CAGR) to compare investments of different lengths.

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