📈 ROI Calculator
Enter what you put in, what you got back and how long it took — get ROI, annualized ROI and payback period.
ROI FAQ
What is a good ROI?
It depends on the risk and the asset class. Historically, broad US stock market indexes have returned roughly 7–10% per year on average, while safer bonds return less. A single-year ROI above that is not automatically "good" — a short holding period makes returns far noisier. What matters is comparing the annualized ROI against what the same money could earn elsewhere at similar risk.
How do I calculate ROI?
ROI = (Amount returned − Amount invested) ÷ Amount invested × 100%. Invest $10,000 and get $13,500 back: ($13,500 − $10,000) ÷ $10,000 = 35% ROI. Simple ROI ignores how long the money was tied up, which is why the annualized figure matters more for comparison.
Why is annualized ROI different from total ROI?
Annualized ROI (also called CAGR) converts a total return into an equivalent yearly compounded rate. A 35% total return over 24 months is only about 16.19% per year compounded, because part of the gain was earned in year one and then compounded in year two.
What is a payback period?
The payback period is how long it takes for cumulative returns to cover the original investment. It is a simple risk measure: a shorter payback means you get your capital back sooner, so less can go wrong before you break even. It ignores what happens after break-even, so pair it with ROI rather than using it alone.
Does this calculator include taxes or fees?
No. Enter your figures net of taxes and fees for a realistic number, or run it twice — once gross and once net — to see how much tax and fees cost you. Capital gains treatment differs by country and holding period.
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