Why Use This ROI Calculator
ROI is a powerful metric, but it has limitations — particularly the lack of a timeframe. This calculator addresses that by providing both total ROI and annualized ROI, enabling fair comparisons between investments of different durations.
- 💰 Total ROI — see your overall percentage gain from the investment.
- 📊 Annualized ROI (CAGR) — understand your average yearly return, adjusted for time.
- 📈 Visual Growth Chart — track your investment’s growth over the holding period.
- 🔁 Compare Investments — use annualized ROI to compare opportunities with different timeframes.
- 📜 Track Your History — save, review, and export past calculations.
- 🔒 100% Private — all calculations run locally in your browser.
ROI Formula Used by This Tool
Total ROI = (Net Profit ÷ Total Invested) × 100
Annualized ROI (CAGR) = (Final Value ÷ Initial Investment)^(1 ÷ Years) − 1
Net Profit = Final Value − Initial Investment
Where:
- Initial Investment = The amount you originally invested.
- Final Value = The current or ending value of your investment.
- Holding Period = The time in years you held the investment.
Example: Bob invested $50,000 in a sheep farming operation. His total profits to date are $70,000. His ROI is: ($70,000 − $50,000) ÷ $50,000 × 100 = 40%
If Bob held the investment for 5 years, his annualized ROI (CAGR) would be: (70,000 ÷ 50,000)^(1/5) − 1 = 6.96% per year.
How to Use This Return on Investment Calculator
- Select your account currency from the picker in the site header.
- Enter your initial investment — the amount you originally invested.
- Enter the final value — the current or ending value of your investment.
- Enter the holding period — how many years you held the investment.
- View your results instantly — see your total ROI, annualized ROI, and net profit.
Frequently Asked Questions
What is ROI?
Return on Investment (ROI) is a widely used metric that measures the profitability of an investment relative to its cost. It provides a quick, simple way to evaluate the potential return of anything from stocks and real estate to business ventures.
What is the ROI formula?
The basic ROI formula is: ROI = (Gain from Investment − Cost of Investment) ÷ Cost of Investment × 100. For example, if you invest $50,000 and earn $70,000 in profits, your ROI is 40%.
What is the difference between ROI and annualized ROI?
ROI does not account for time. Two investments with the same ROI can have vastly different holding periods. Annualized ROI (CAGR) adjusts for time, showing the average yearly return and enabling fair comparisons between different investment durations.
Why is ROI sometimes difficult to use?
The challenge lies in defining ‘cost’ and ‘gain’. Different investors include different factors such as taxes, insurance, capital expenditures, or operating costs. This variability makes ROI a useful starting point, but it should be supplemented with other metrics.
Can I use this calculator for any investment?
Yes — use it for stocks, mutual funds, real estate, crypto, or any investment where you have start and end values.
Is my data stored anywhere?
No. All calculations run locally in your browser. History and presets are saved in your browser’s localStorage — nothing is sent to a server.