ROI Calculator
Calculate Return on Investment (ROI) and annualized return from initial investment and final value.
ROI
+50.0%
Gain
$5,000.00
Annualized
14.5%/yr
Period
3 yrs
Frequently Asked Questions
How is ROI calculated?+
ROI = ((Final Value - Initial Investment) / Initial Investment) × 100. If you invest $10,000 and get back $15,000: ((15,000 - 10,000) / 10,000) × 100 = 50% ROI.
What is annualized ROI?+
Annualized ROI accounts for the time period. A 50% return over 3 years is ~14.5% annualized. Formula: ((Final / Initial)^(1/years) - 1) × 100. This lets you compare investments of different durations.
What is a good ROI?+
It depends on the investment type and risk. S&P 500 averages ~10% annually. Real estate averages 8-12%. A 'good' ROI beats the risk-free rate (Treasury bonds, ~4-5%) by enough to compensate for risk.