This ROI calculator measures how much an investment gained or lost compared with what you put in. Add how long you held it to see the annualized return, which lets you compare investments of different lengths fairly.
ROI formula
ROI = (final value − amount invested) ÷ amount invested × 100
Annualized ROI = (final value ÷ amount invested)1 ÷ years − 1
Worked example
You invest $10,000 and it is worth $13,500 after 3 years. ROI = 3,500 ÷ 10,000 = 35%. The annualized ROI is about 10.52% per year.
Frequently asked questions
Why use annualized ROI?
A 35% return over 3 years and a 35% return over 10 years are very different. Annualized ROI converts both to a yearly rate so you can compare them.
What should I include in the amount invested?
Include all costs, such as fees, commissions and improvement costs, and use the value after selling costs as the final value. Leaving costs out makes ROI look better than it is.