ROI Calculator

Enter what you paid, what you received (or expect to receive), and how many years you held the investment. The calculator returns simple ROI, net profit in dollars, and a compound annualized rate.

• Initial investment — the amount you put in, including fees if you want them in the cost basis.
• Final value — sale proceeds, current market value, or total cash returned.
• Holding period — years the money was invested. Fractions are allowed (1.5 = 18 months).
• Annualized ROI — the constant yearly rate that would grow the cost to the final value.

You invest $10,000 and later sell for $15,000 after 2 years:

• Profit = $15,000 − $10,000 = $5,000
• ROI = $5,000 ÷ $10,000 = 50%
• Annualized ROI = (1.50)^(1/2) − 1 = 22.5%

A 50% gain in two years is not the same as 50% per year. The annualized figure is the one to compare against other investments.

• ROI — total return over the whole holding period, not per year.
• Net profit — dollars gained or lost (negative if you lost money).
• Annualized ROI — compound yearly rate; useful when comparing deals of different lengths.

• Investopedia — Return on Investment (ROI)
• Investopedia — Annualized Rate of Return