About the ROI Calculator
Return on investment measures gain relative to what you put in. Enter the amount invested and what it returned to get ROI as a percentage, and — with a time period — the annualized rate for fair comparison.
How it’s calculated
ROI = (final value − cost) ÷ cost × 100. Annualized = (final ÷ cost)^(1 ÷ years) − 1.
Example calculation
Turning a $10,000 investment into $13,500 is a 35% ROI; over 3 years that's about 10.5% annualized.
Frequently asked questions
Why annualize ROI?
A 35% total return over three years is very different from 35% in one year. Annualizing puts returns of different lengths on the same yearly scale so you can compare them.
Does ROI account for risk?
No — ROI measures return only. Two investments with the same ROI can carry very different risk, so weigh both when deciding.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.