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