Finance
ROI Calculator
Measure the return on any investment. See your total ROI, absolute profit, and annualized return — the real measure of performance.
Total ROI
+50.00%
Absolute Profit
+$5,000
Annualized ROI
+14.47%
per year (CAGR)
Frequently asked questions
What's the difference between ROI and annualized ROI?
Total ROI shows your overall return percentage over the entire investment period. Annualized ROI (CAGR) shows the average annual return — this lets you compare investments of different durations fairly. A 50% ROI over 5 years is about 8.4% annualized.
What's a good ROI?
It depends on your investment type and risk. Stock market average is 7-10% annually. Real estate typically returns 8-12% annually. Business investments aim for higher returns to compensate for higher risk. Compare annualized ROI, not total ROI.
Does this account for ongoing costs?
No — this is a simple ROI calculator. For investments with ongoing fees, maintenance costs, or taxes, subtract those from the final return before entering the numbers. The formula is: ROI = (Gain − Cost) / Cost × 100.
What is CAGR?
CAGR stands for Compound Annual Growth Rate. It's the average annual growth rate of an investment over a specified period, assuming the profits are reinvested at the end of each year. It's the best metric for comparing investment performance across different time periods.
Calculate the return on investment (ROI) for any investment with our free ROI calculator. Enter your initial investment, final return amount, and time period to see total ROI percentage, absolute profit, and annualized return (CAGR).
Perfect for evaluating stocks, real estate, business investments, or any financial decision. The annualized ROI lets you compare investments with different time horizons on equal footing.