Investment ROI Calculator

Calculate the return on investment (ROI) and annualized return for any investment. Compare different investments and make smarter financial decisions.

$
$
$
Advertisement Space — Google AdSense

How to Calculate ROI

Return on Investment (ROI) measures the profitability of an investment. The formula is simple: ROI = (Final Value - Initial Investment) / Initial Investment x 100

Understanding Annualized Return

Annualized return shows what your return would be if the investment grew at a steady rate every year. This makes it easier to compare investments with different time periods.

What Affects Your Real ROI?

  • Fees and commissions — Trading fees, management fees, and expense ratios eat into returns
  • Taxes — Capital gains taxes reduce your actual returns
  • Inflation — A 10% nominal return with 3% inflation is only 7% in real terms
  • Dividends — Reinvested dividends significantly boost long-term returns