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Calculate your return on investment (ROI) instantly. Enter initial investment and final value to see profit, loss, and annualized returns.
This calculator provides estimates only. Actual investment returns may vary based on fees, taxes, market conditions, and other factors not included in this calculation.
Past performance does not guarantee future results. Always consider the full picture including fees, taxes, and risk before making investment decisions. Consult a financial advisor for personalized advice.
An ROI (Return on Investment) calculator helps you measure the profitability of an investment. By entering your initial investment amount and the final value, you can instantly see your percentage return, absolute profit or loss, and annualized performance. This tool is essential for comparing different investments, evaluating past decisions, and planning future financial strategies.
Use an ROI calculator to:
Stocks & ETFs - Track gains or losses on equity investments and index funds
Real Estate - Calculate property appreciation and rental income returns
Business Investments - Measure ROI on equipment, marketing, or expansion projects
Bonds & Fixed Income - Evaluate returns on debt securities and CDs
Cryptocurrency - Track volatile digital asset performance over time
ROI Percentage - The percentage return on your investment. Positive values indicate profit, negative values indicate loss. A 25% ROI means you earned 25 cents for every dollar invested.
Profit/Loss - The absolute dollar amount you gained or lost. This is simply the final value minus your initial investment.
Annualized Return (CAGR) - The compound annual growth rate normalizes returns to a yearly basis, allowing fair comparison between investments held for different periods.
Performance Category - A quick assessment ranging from 'Significant Loss' to 'Exceptional Return' based on your ROI percentage.
Simple ROI:
ROI = ((Final Value - Initial Investment) / Initial Investment) × 100Annualized ROI (CAGR):
Annualized ROI = ((Final Value / Initial Investment) ^ (1 / Years) - 1) × 100Example: $10,000 invested growing to $15,000 = ((15000-10000)/10000) × 100 = 50% ROI
A 'good' ROI depends on the investment type and risk level. For stocks, the S&P 500 has historically returned about 10% annually. Real estate typically targets 8-12% annually. High-risk investments may require 15%+ to compensate for increased volatility. Always compare ROI to risk-free alternatives like savings accounts or treasury bonds.
ROI is calculated as: ((Final Value - Initial Investment) / Initial Investment) × 100. For example, if you invest $10,000 and it grows to $12,500, your ROI is ((12,500 - 10,000) / 10,000) × 100 = 25%. This percentage represents your profit relative to your initial investment.
Simple ROI shows total return regardless of time. Annualized ROI (CAGR) converts the return to an annual rate, allowing fair comparison between investments held for different periods. A 50% total return over 5 years equals about 8.45% annualized, while 50% in 1 year is much better at 50% annualized.
Yes, ROI is negative when you lose money on an investment. If you invest $10,000 and the value drops to $8,000, your ROI is -20%. Negative ROI indicates a loss, and the percentage shows how much of your original investment was lost.
Yes! For accurate ROI on stocks, include all returns: capital appreciation, dividends, and any other distributions. Add dividend income to your final value before calculating. This gives you the 'total return' which represents your actual investment performance.
ROI measures simple percentage return. Related metrics include: IRR (Internal Rate of Return) for irregular cash flows, NPV (Net Present Value) for time-value of money, and Sharpe Ratio for risk-adjusted returns. Each metric serves different analytical purposes.
Include all costs: purchase commissions, management fees, trading costs, taxes, and any other expenses. For real estate, include closing costs, maintenance, property taxes, and insurance. True ROI accounts for every dollar spent on the investment.
Review ROI quarterly or annually for long-term investments. More frequent calculations may lead to emotional decisions. For active trading, track ROI per trade. Annual reviews help assess progress toward financial goals while avoiding reactionary moves to short-term volatility.
No. ROI doesn't account for risk, time value of money, or opportunity cost. Consider using multiple metrics: ROI for simple comparison, CAGR for annualized performance, Sharpe Ratio for risk-adjusted returns, and benchmark comparisons for relative performance.
Common benchmarks include: S&P 500 (~10% historical annual return), inflation rate (2-3%), savings account rates (0.5-5%), and 10-year Treasury bonds (~4-5%). Your required ROI should exceed inflation and ideally beat passive index fund returns to justify active investment decisions.