Investment Return Calculator

About Investment Return Calculator

ROI (Return on Investment) measures how much profit an investment generated relative to what was put in — a straightforward percentage that answers "was this worth it," whether the investment is a stock, a piece of real estate, a marketing campaign, or a business initiative. The basic formula is simple: net gain divided by the initial investment, times 100.

This tool calculates that basic ROI from an initial investment and final value, showing both the net dollar gain and the ROI percentage. But basic ROI alone has a real limitation — it doesn't account for how long the investment took to produce that return, which makes comparing investments of different durations misleading. A 40% ROI over 6 months is a very different result than a 40% ROI over 10 years.

That's why this tool also calculates annualized ROI when you provide a time period — using the compound annual growth rate (CAGR) formula, which expresses the return as an equivalent constant yearly growth rate. This makes it possible to fairly compare two investments with different holding periods on the same annualized basis, rather than being misled by a total ROI figure that doesn't account for time.

This is useful for evaluating whether a specific investment performed well, comparing multiple investment opportunities with different time horizons, or checking a business initiative's return against a target hurdle rate before committing further resources.

How it works

1. Enter your initial investment and final value. What you put in, and what it's worth now (or was worth when sold/closed).
2. Optionally add the time period. In years — enables the annualized ROI calculation for fair comparison.
3. View total and annualized ROI. Net gain and both ROI figures calculated instantly.