ROI Calculator
Calculate the return on investment (ROI) and annualized ROI for an investment.
Fees, commissions, or other costs to include in your cost basis (optional).
Enter your values to calculate your result.
Formula
ROI % = (Final Value − Total Cost) ÷ Total Cost × 100
Total Cost is your Initial Investment plus any Additional Costs. ROI is the net gain (or loss) as a percentage of that total cost. Annualized ROI applies the same compound-growth math as CAGR — (Final Value ÷ Total Cost)^(1 ÷ Years) − 1 — to express the return as an equivalent constant yearly rate.
Example
A $5,000 investment (no additional costs) that grows to $6,500 over 3 years has a net gain of $1,500 — a 30% total ROI, or about a 9.14% annualized ROI.
Frequently Asked Questions
What's the difference between total ROI and annualized ROI?
Total ROI is the overall percentage gain over the whole holding period, regardless of how long that took. Annualized ROI converts that into an equivalent constant yearly rate, which makes it possible to fairly compare investments held for different lengths of time.
Should I include fees in Additional Costs?
Yes — any commission, transaction fee, or other cost of acquiring or holding the investment belongs in Additional Costs, since it's part of what you actually paid.