Find the return on an investment as a total percentage and, optionally, an annualized rate. Enter the amounts and time held.
Usage Tip
Always annualize when comparing investments of different durations — total ROI alone favors whatever was held longest.
Annualized = ((final ÷ invested)^(1/years) − 1) × 100
A 50% ROI over 5 years is far weaker than 50% over 1 year.
Annualizing assumes steady compounding, which real returns rarely follow.
Include all costs (fees, taxes) in the invested and final figures for a true ROI.
Return on investment compares what you gained or lost with what you put in. It is the final value minus the amount invested, divided by the amount invested, expressed as a percent. Investing 1,000 and ending with 1,250 is a 25 percent return.
A total return does not show how long it took, so a 25 percent return over two years is a very different outcome from the same return over ten. If you enter the years held, the calculator also gives an annualized rate, which makes investments with different time periods comparable. The figures do not include taxes, fees, or inflation unless you build them into the amounts. Past returns do not predict future results.