ROI Calculator
Measure your investment performance — see total and annualized returns at a glance.
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Everything you need to know
Why ROI Matters
Return on Investment is the most fundamental metric for evaluating whether an investment was worth making. Whether you're measuring the performance of stocks, real estate, a business venture, or even a marketing campaign, ROI gives you a simple percentage that tells the whole story. A positive ROI means you made money; a negative one means you lost. The simplicity of the formula — (Final Value - Initial Cost) / Initial Cost × 100% — makes it universally applicable across asset classes and time horizons.
Annualized ROI: The Apples-to-Apples Comparison
Raw ROI doesn't account for time. A 50% return over 10 years is very different from 50% in one year. Annualized ROI normalizes returns to a per-year basis using the compound annual growth rate (CAGR) formula. This makes it easy to compare a 3-year stock position against a 7-year real estate investment or any other combination. When entering your time period, you'll get both the total and annualized figures side by side so you can make informed decisions.
Interpreting Your Results
Context is everything. A 12% annual ROI might sound great, but if inflation is running at 5%, your real purchasing power only grew by about 7%. Similarly, compare your ROI against relevant benchmarks. Equities have historically averaged around 10% annually, while bonds hover around 4-6%. If your investment is underperforming its benchmark on a risk-adjusted basis, it might be time to reconsider your strategy.
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See long-term compounding with the Compound Interest Calculator. Measure growth rates with the CAGR Calculator. Planning monthly investments? Try the SIP Calculator.