How to use
Enter the amount invested, the total amount you got back (sale proceeds plus any income received) and how long you held the investment in years. You’ll see the profit, ROI for the whole period and the annualized return.
Formulas
- ROI = (amount returned − amount invested) ÷ amount invested × 100%.
- Annualized return (CAGR) = (amount returned ÷ amount invested)^(1 ÷ years) − 1.
ROI shows the result for the whole period; the annualized return lets you compare investments held for different lengths of time.
Example
You invest $10,000 and get $15,000 back after 3 years. Profit is $5,000, ROI is 50% and the annualized return is 14.47%. Another investment returned 20% in 1 year: lower ROI, but a better return per year.
FAQ
Are taxes and inflation included? No. For a net figure, subtract taxes and fees from the amount returned. To adjust for rising prices, use the inflation calculator.
What if I added money along the way? These formulas assume a single investment at the start. For regular contributions, the compound interest calculator is a better fit.
Can ROI be negative? Yes, if you got back less than you invested.
This is an estimate for reference, not investment advice; past returns don’t guarantee future results.