ROI calculator
How much an investment earned, as a total and as a yearly rate you can compare with anything else.
How it’s worked out
- Gain
- Total ROI
- ROI = (B − A) ÷ A × 100
- Annualized ROI
- (B ÷ A)1 ÷ t − 1
Why the annualized figure matters
A 40% return sounds better than 25%, until you learn the first took ten years and the second took two. Annualized ROI puts both on the same footing: about 3.4% a year against 11.8% a year.
Questions people ask
What is a good ROI?
It depends on the risk and the time. As a yardstick, the US stock market has returned roughly 10% a year on average over the long run before inflation, with large swings. Compare your annualized ROI with what the same money could have earned somewhere safer.
What is the difference between ROI and annualized ROI?
ROI is the total gain over the whole period. Annualized ROI spreads it across the years with compounding, so a 50% gain over 5 years works out to about 8.45% a year.
Should I include fees and taxes?
Yes. Add fees and costs to the amount invested, and subtract taxes paid from the amount returned.