ROI Calculator
Calculate return on investment and analyze investment performance
Investment Details
Investment Results
Investment Summary
Common Investment Scenarios
Click to see projected returns based on historical averages
Understanding ROI Calculations
ROI Formula:
Annualized Return Formula:
Key Metrics Explained:
- • ROI: Total percentage gain or loss on the investment
- • Annualized Return: Average yearly return, accounting for compound growth
- • Profit Margin: Net profit as a percentage of the final value
Investment Tips:
- • Consider all costs including fees, taxes, and maintenance
- • Compare annualized returns when evaluating investments of different durations
- • Higher returns typically come with higher risk
- • Past performance doesn't guarantee future results
How to Use
- 1
Enter initial investment
Input your initial investment amount
- 2
Enter final value
Input the final value of your investment
- 3
Specify time period
Enter the investment period in years
- 4
Add costs
Include any additional costs or fees
- 5
View results
See ROI, annualized return, and profit metrics
Frequently Asked Questions
What is ROI?
What is ROI?
ROI (Return on Investment) is a performance measure used to evaluate the efficiency of an investment. It measures the amount of return on an investment relative to its cost, expressed as a percentage.
How is ROI calculated?
How is ROI calculated?
ROI is calculated using the formula: ROI = ((Final Value - Initial Investment - Additional Costs) / (Initial Investment + Additional Costs)) × 100%. This gives you the percentage gain or loss on your investment.
What is annualized return?
What is annualized return?
Annualized return shows the average yearly return of an investment, accounting for compound growth. It's useful for comparing investments with different time periods. The formula accounts for the compounding effect over multiple years.
What's a good ROI?
What's a good ROI?
A "good" ROI varies by investment type and risk level. Stock market historically averages 10% annually, while bonds might return 3-5%. Higher returns often come with higher risk. Always consider your risk tolerance and investment goals.
Should I include all costs in the calculation?
Should I include all costs in the calculation?
Yes! Include all costs such as transaction fees, maintenance costs, taxes, and any other expenses related to the investment. This gives you the true ROI and helps make better investment decisions.
What's the difference between ROI and profit margin?
What's the difference between ROI and profit margin?
ROI measures the efficiency of an investment relative to its cost, while profit margin shows profit as a percentage of revenue. ROI focuses on return relative to investment, while profit margin focuses on operational efficiency.
How do I use the investment scenarios?
How do I use the investment scenarios?
Click on any scenario to see projected returns based on historical averages for that investment type. These are estimates only - actual returns vary based on market conditions and specific investments.