ROI Calculator
Return on investment and annualized return.
$
$
years
Return on investment14.47% per year, annualized
- Gain or loss
- $5,000.00
- Annualized return
- 14.47%
AdvertisementIn-content, 336×280 or responsive
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
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.
Offers from our partners
Sponsored
Compare mortgage rates
Placeholder for a rate-comparison partner.
Sponsored
Personal loan offers
Placeholder for a loan marketplace partner.
Sponsored
Insurance quotes
Placeholder for a home or auto insurance partner.