ROI Calculator
Track capital returns. Input original investment amount, final value, and years to find total gains, net ROI percentage, and annualized ROI.
Parameters
Results Summary
This calculator determines the results based on the following standard financial formula for Return on Investment (ROI):
Variables Glossary
- ROI %
- Total Return on Investment percentage
- Annualized ROI
- Compound Annual Growth Rate of returns per year
- Initial Investment
- Original capital invested
- Final Value
- Maturity value or returns received
- t
- Tenure of investment in years
Calculates simple gains relative to original investment costs. The annualized formula uses compounding roots.
What is ROI?
Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment. It measures the amount of return on an investment relative to its cost.
Why is Annualized ROI important?
Simple ROI does not take investment length into account. A 50% ROI over 1 year is extraordinary, but a 50% ROI over 10 years is relatively low (~4.1% per year). Annualized ROI accounts for time, making comparison of different assets fair.