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ROI Calculator

Looking for a roi calculator with annualized return? This free tool gives you total ROI plus annualized return for any investment period. Just enter your numbers and press Calculate — results are instant.

How to Use This ROI Calculator

Return on investment measures how much profit an investment made compared with what you put in: the gain divided by the amount invested, as a percent. But a 35% gain over one year is very different from the same gain over ten years, so the calculator also gives the annualized return — the steady yearly rate that would produce the same result over the same period. Always compare investments by the annualized figure, not the total.

Formula Used

ROI = (returned − invested) ÷ invested × 100. Annualized return = (returned ÷ invested)^(1 ÷ years) − 1, expressed as a percent.

Worked Example

Example: Amount invested $10,000 · Amount returned $13,500 · Investment length 3 years

  1. Investment gain = $13,500 − $10,000 = $3,500.00.
  2. ROI = $3,500 ÷ $10,000 × 100 = 35.00%.
  3. Annualized return = (13,500 ÷ 10,000)^(1 ÷ 3) − 1 = 10.52% per year — the fair way to compare it with other investments.

ROI: 35.00%

Frequently Asked Questions

What is a good ROI?

It depends on the investment and the risk. A savings account might return a few percent; stocks have historically returned more on average but with much bigger swings. Always compare the annualized return, not just the total, and remember higher returns usually mean higher risk.

Can ROI be negative?

Yes. If you get back less than you invested, the gain is negative and so is the ROI. The calculator shows the loss as a negative percent.

Does ROI include time?

No — and that is its weakness. A 35% gain in one year is excellent; the same gain over ten years is poor. The annualized return fixes that, which is why this calculator shows both.

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