ROI Calculator
Calculate your return on investment and annualized rate of return.
Fees, commissions, maintenance, etc.
45.00%
total ROIAnnualized: 13.19% / year
Total Invested
$10,000
Final Value
$14,500
Net Profit / Loss
+$4,500
Period
3 years
S&P 500 historical avg: ~10% / year
Inflation avg: ~3% / year
Real return: 10.19% / year
Formula
ROI measures the profit or loss from an investment as a percentage of the amount invested.
ROI (%) = (Final Value - Initial Investment) / Initial Investment × 100
Annualized ROI accounts for the holding period and expresses annual returns.
Worked Example
You invest $10,000 in a stock that grows to $14,000 over 3 years:
- Initial investment: $10,000
- Final value: $14,000
- Net profit: $4,000
- Total ROI: 40%
- Annualized ROI: 11.9% per year
Common Questions
What's a good ROI?
S&P 500 historically averages ~10% annually. Returns above 10% beat the market; below ~3% barely keep up with inflation. Compare your ROI to a benchmark like the S&P 500, not just raw percentage.
How do I account for fees and taxes?
This calculator shows gross returns. Subtract fees, commissions, and taxes (capital gains) to get your true net ROI. For example, a 10% return minus 20% capital gains tax is really 8%.
Is annualized ROI the same as average annual return?
No. Annualized ROI accounts for compounding. A 40% gain over 3 years is 11.9% annualized, not 13.3% (which would be simple division).
Key Takeaways
- Always annualize ROI to compare investments held for different periods.
- Account for fees and taxes—they can reduce your net return by 2–5% annually.
- Use ROI to evaluate stock picks, real estate, or any investment against market benchmarks.