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ROI Calculator

Return on investment and annualized return.

$
$
years
Return on investment50%14.47% per year, annualized
Gain or loss
$5,000.00
Annualized return
14.47%
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How this calculator works

ROI compares the gain to the original cost. Annualized ROI spreads that return over the holding period so investments of different lengths can be compared.

Formula

ROI = (Return − Cost) ÷ Cost; Annualized = (Return ÷ Cost)^(1/t) − 1

Example

Turning $10,000 into $15,000 over 3 years is a 50% ROI, or about 14.47% a year.

When to use it

  • Compare investments of different lengths
  • Evaluate a marketing campaign
  • Judge a property or business purchase
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Frequently asked questions

What is a good ROI?

It depends on the risk and time involved. As a reference, broad stock markets have returned roughly 7–10% a year over long periods.

Why use annualized ROI?

A 50% gain over ten years is very different from 50% in one year. Annualizing puts investments of different lengths on equal footing.

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