By ToolzHive
About this tool
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.
How to use ROI Calculator
- Enter the amount you invested and the amount you got back, or the investment's current value.
- Optionally, enter how many years you held it.
- Read the ROI, net profit and annualized return.
Worked 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.
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.
Put this guide into practice
- ROI Calculator — Calculate return on investment and the annualized return (CAGR).