ROI Calculator

Calculate return on investment including total ROI percentage and annualized return. Compare investment performance across different time horizons.

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Frequently Asked Questions

What is the difference between total ROI and annualized return?
Total ROI shows the overall percentage gain or loss on your investment. Annualized return converts that total into an equivalent yearly rate, making it easier to compare investments held for different time periods. A 100% total ROI over 10 years equals about 7.2% annualized, while the same 100% over 5 years equals 14.9% annualized.
What is considered a good ROI?
A good ROI depends on the investment type and risk level. The stock market averages about 10% annually. Real estate typically returns 8-12% including appreciation and rental income. A risk-free savings account might yield 4-5%. Generally, higher potential ROI comes with higher risk.
How do fees and taxes affect my real ROI?
Investment fees (expense ratios, advisory fees, trading commissions) and taxes (capital gains, dividend taxes) reduce your actual return. A fund returning 8% with a 1% expense ratio effectively earns 7%. Long-term capital gains are taxed at lower rates than short-term gains, so holding investments for over a year is generally more tax-efficient.

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