📈 ROI Calculator
Enter what you put in, what you got back and how long it took — get ROI, annualized ROI and payback period.
How to use the ROI Calculator
Enter your total cost and current value to get your return, your annualized return over the holding period and how long it took to break even.
How it works
Total ROI is (gain − cost) ÷ cost × 100%. Because it does not account for time, short-term gains look disproportionately large, so the annualized figure is the only honest way to compare investments held for different periods. Annualizing uses (ending ÷ beginning)1/n − 1, which assumes the growth was smooth rather than lumpy.
When to use it
Use it to check whether an investment actually beat the alternative of holding cash, to compare across different holding periods, and to review a portfolio position rationally.
Worked example
A $10,000 investment worth $13,000 after 3 years:
| Measure | Value |
|---|---|
| Total return | $3,000 |
| Total ROI | 30% |
| Annualized return | 9.14% |
| Break-even | about 33 months |
Assumptions and limitations
This measures the past, not the future. Annualized returns are misleading for lumpy gains, and the calculation ignores inflation, taxes and fees, all of which reduce what you keep. A strong historical return says nothing about what the same asset will do next. Not investment advice.
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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