ROI Calculator

Calculate return on investment for smarter financial decisions

Investment Returns

Total ROI
50%
Annualized ROI
14.5%
Total Gain
$5,000
Investment Growth
Initial: $10,000 Final: $15,000

Understanding ROI

ROI Formula:

ROI = (Final Value - Initial Investment) / Initial Investment × 100

📈 Total ROI

Overall return as a percentage of your initial investment, regardless of time period.

📅 Annualized ROI

Returns normalized to a yearly basis using compound annual growth rate (CAGR) formula.

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Frequently Asked Questions

What is ROI?

ROI (Return on Investment) measures the profitability of an investment relative to its cost. It's expressed as a percentage: ROI = (Gain - Cost) / Cost × 100.

What's a good ROI?

A good ROI varies by investment type. Stock market averages 7-10% annually. Real estate aims for 8-12%. Business investments often target 15-25% or higher.

What's the difference between ROI and profit?

Profit is an absolute dollar amount (revenue minus costs). ROI is a percentage that shows profit relative to investment size, making it easier to compare different investments.

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