Find the return on an investment as a total percentage and, optionally, an annualized rate. Enter the amounts and time held.
Total ROI
— %
Return on investment.Usage Tip
Always annualize when comparing investments of different durations — total ROI alone favors whatever was held longest.
THE MATH
ROI = (final value − amount invested) ÷ amount invested × 100
Annualized = ((final ÷ invested)^(1/years) − 1) × 100
Annualized = ((final ÷ invested)^(1/years) − 1) × 100
ROI measures total gain relative to what you put in. The annualized rate spreads that over the holding period so you can compare investments held for different lengths.
A 50% ROI over 5 years is far weaker than 50% over 1 year.
A 50% ROI over 5 years is far weaker than 50% over 1 year.
ROI ignores the timing of cash flows and risk; two investments with equal ROI can differ greatly in both.
Annualizing assumes steady compounding, which real returns rarely follow.
Include all costs (fees, taxes) in the invested and final figures for a true ROI.
Annualizing assumes steady compounding, which real returns rarely follow.
Include all costs (fees, taxes) in the invested and final figures for a true ROI.