💹 ROI Calculator
Calculate your return on investment (ROI), annualized return, and total gains. Works for stocks, real estate, business investments, and more.
Understanding ROI
ROI Formula
Example: Invested $10,000, now worth $15,000 → ($15,000 - $10,000) ÷ $10,000 × 100% = 50% ROI
Annualized Return Formula
This accounts for compounding and time, giving you a true annual average return.
Real-World ROI Examples
- Stock Investment: Bought 100 shares at $50 ($5,000), sold at $75 ($7,500) after 2 years = 50% ROI, 22.5% annualized
- Real Estate: Bought house for $300k, sold for $450k after 5 years = 50% ROI, 8.4% annualized (plus rental income!)
- Business Investment: Invested $50k in equipment, generated $80k profit over 3 years = 60% ROI, 17% annualized
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Frequently Asked Questions
What is ROI (Return on Investment)?
ROI measures how much profit you made relative to your initial investment. It's calculated as: (Final Value - Initial Investment) ÷ Initial Investment × 100%. For example, investing $10,000 that grows to $15,000 is a 50% ROI.
What is the difference between ROI and annualized return?
ROI is total return regardless of time period. Annualized return adjusts for time, showing average yearly return. A 50% ROI over 10 years is much worse than 50% over 1 year. Annualized return lets you compare investments held for different time periods.
What is a good ROI for investments?
S&P 500 historical average: 10% annually. Good stock portfolio: 8-12%. Conservative portfolio (bonds): 4-6%. Real estate: 8-12%. Anything beating 7-8% annually is solid. Remember: higher returns = higher risk. Beware of "guaranteed" high returns - likely a scam.
How do I calculate ROI on stocks with dividends?
Include dividends in your final value. Formula: [(Final Stock Value + Total Dividends Received) - Initial Investment] ÷ Initial Investment × 100%. Dividends significantly boost total return, especially when reinvested.
What is CAGR vs simple ROI?
Simple ROI: total return without considering time. CAGR (Compound Annual Growth Rate): smoothed annual return accounting for compounding. CAGR is better for comparing multi-year investments. A 100% ROI over 10 years = 7.2% CAGR, not 10%.
Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.