ROI Calculator

How this ROI calculator works

Enter your initial investment amount, the final value, and how long you held the investment. The calculator shows your total ROI, annualized ROI (yearly average), and the absolute profit.

The ROI formula

ROI = (Final Value − Initial Cost) / Initial Cost × 100

Annualized ROI formula

Annualized ROI = ((Final ÷ Initial)^(1 ÷ years) − 1) × 100

Annualized ROI lets you compare investments held for different time periods. Earning 50% over 5 years is ~8.45%/yr — very different from 50% in one year.

ROI limitations

• ROI does not account for inflation — subtract inflation for real returns
• ROI ignores cash flow timing (dividends, contributions)
• Higher ROI often means higher risk — always consider risk-adjusted returns