📐 ROI Calculator
Calculate your return on investment percentage, net profit, and annualized ROI.
Investment Details
Your Result
Annualized ROI is only calculated when a duration greater than zero is provided. It reflects the compound annual growth rate (CAGR) of your investment.
How the ROI Calculator Works
Return on investment (ROI) measures the profitability of an investment relative to its cost. Annualized ROI normalizes that return to a yearly rate so investments of different durations can be compared fairly.
Formula
Net Profit = Final Value − Initial Investment
Annualized ROI % = [(Final Value / Initial Investment)^(1/years) − 1] × 100
Frequently Asked Questions
What is a good ROI?
A "good" ROI depends on the asset class and risk involved. Stock market investments often target long-term annualized returns of 7-10%, while other assets may have different benchmarks.
Why is annualized ROI different from total ROI?
Total ROI reflects the entire gain over the whole holding period, while annualized ROI spreads that gain evenly across each year using compound growth, making it easier to compare investments held for different lengths of time.
Can ROI be negative?
Yes. If the final value is less than the initial investment, ROI is negative, indicating a net loss on the investment.