ROI Calculator
Work out the return on an investment as a percent, and the average return per year.
Return on investment
45%
- Gain or loss
- $4,500.00
- Annualized return
- 13.1851%
A return of 45% means a gain of $4,500.00.
Calculation breakdown
| Step | Formula | Result |
|---|---|---|
| Gain or loss | $14,500.00 − $10,000.00 | $4,500.00 |
| Return on investment | $4,500.00 ÷ $10,000.00 | 45% |
| Annualized return | ($14,500.00 ÷ $10,000.00) ^ (1 ÷ 3) − 1 | 13.1851% |
How it works
Enter what you invested, what it is worth now, and how many years you held it.
Worked example
$10,000 grew to $14,500 over 3 years:
- Gain: 14,500 − 10,000 = $4,500
- ROI: 4,500 ÷ 10,000 = 45%
- Annualized: 1.45 ^ (1 ÷ 3) − 1 = 13.19% a year
Sources
Frequently asked questions
How do you calculate ROI?
Subtract what you paid from what it is worth now, then divide by what you paid. Paying $10,000 and ending with $14,500 is a gain of $4,500, which is a 45% return on investment.
What is annualized ROI?
It is the steady yearly return that would give the same total growth. The formula is (final value ÷ amount invested) raised to the power 1 divided by the years, minus 1. A 45% return over 3 years is about 13.19% a year.
Should I include dividends and fees?
Yes. Add any income you received to the final value, and include fees in the amount invested. That gives a truer return.
Can ROI be negative?
Yes. If the final value is below what you paid, ROI is negative. Losing everything is a return of −100%.
Does ROI account for inflation or taxes?
No. It is a simple ratio of dollars. To see the effect of inflation, adjust the amounts with the inflation calculator.
For information only, not investment advice. Past returns do not predict future returns.