ROI Calculator
Measure the profitability of any investment with total ROI and annualized ROI.
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Enter Your Investment Figures
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 per-year rate so investments of different lengths can be compared fairly.
Formula Used
ROI = (Final Value − Initial Investment) / Initial Investment × 100
Annualized ROI = [(Final Value / Initial Investment)^(1/years) − 1] × 100
Example
A $15,000 investment that grows to $21,000 over 3 years has a total ROI of 40% — but an annualized ROI of about 11.9% per year.
Practical Use
Use annualized ROI to fairly compare a 1-year investment against a 5-year investment on equal footing.
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