ROI Calculator

Measure the profitability of your investments with our simple and accurate Return on Investment (ROI) calculator. Instantly calculate your total gain or loss and find the annualized return to compare different opportunities effectively. An essential tool for any investor, from beginners to seasoned professionals. Explore more tools on free calculators on CalculatorBolt.

Calculate Your ROI

Total initial capital invested
Total value received (including initial capital)
Duration of the investment

Include Investment Fees

How It Works

ROI is a key metric that measures the efficiency of an investment. Our calculator uses the standard formula: (Gain from Investment - Cost of Investment) / Cost of Investment. The annualized ROI is particularly useful as it standardizes returns over a one-year period, allowing you to compare a 2-year investment with a 5-year one on equal footing.

Inputs Explained

  • Amount Invested: The total initial capital you put into the investment.
  • Amount Returned: The total value you received when the investment ended, including your initial capital.
  • Investment Term: The duration of the investment. This is crucial for calculating the annualized ROI.

Example

If you invest $10,000 in a stock and sell it two years later for $12,000, your net profit is $2,000. Your total ROI is 20%. Your annualized ROI is approximately 9.54%, which tells you the equivalent yearly return of your investment.

Tips & Notes

  • A positive ROI indicates a profitable investment, while a negative ROI means a loss.
  • Annualized ROI is the best metric for comparing investments with different time frames.
  • ROI does not account for risk. A high ROI often comes with higher risk.
  • Consider using the "Include Fees" option for more accurate calculations.

FAQs

A good ROI depends on your investment type and risk tolerance. Generally, 10-15% annually is considered excellent for stock investments, while real estate might aim for 8-12%. Compare your ROI against benchmarks relevant to your investment category.

Total ROI shows the overall return over the entire investment period. Annualized ROI converts this to an equivalent yearly rate, making it easier to compare investments of different durations. For example, a 20% return over 2 years equals approximately 9.54% annualized.

By default, no. However, you can enable the 'Include Fees' option in Advanced Options to deduct investment fees from your return. For tax calculations, consult a tax professional as tax treatment varies by country and investment type.

Yes, a negative ROI indicates a loss on your investment. For example, if you invest $10,000 and receive $9,000 back, your ROI is -10%. This is useful for understanding underperforming investments.

Total ROI = ((Amount Returned - Amount Invested) / Amount Invested) × 100. Annualized ROI = ((Amount Returned / Amount Invested)^(1 / Years) - 1) × 100.

Disclaimer

Important: This calculator is for educational and informational purposes only and does not constitute financial advice. All investment decisions should be made after consulting with a qualified financial professional and considering your own risk tolerance. Past performance is not indicative of future results.

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Author: CalculatorBolt Editorial Team
Reviewed by: Financial Analyst
Published: • Updated: