Investment Details

Total amount invested
Current or final value of investment
Optional: For annualized ROI
Return on Investment
0%
Initial Cost
$0
Final Value
$0
Profit / Loss
$0
Annualized ROI
0%

What is ROI?

Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment. It compares the gain or loss from an investment relative to its cost.

ROI = ((Final Value - Initial Cost) / Initial Cost) Ă— 100%
Positive ROI = Profit | Negative ROI = Loss

ROI Interpretation Guide

ROI Range Performance What It Means
+20% or higher Excellent Outstanding investment performance
+10% to +20% Good Solid returns above market average
0% to +10% Moderate Acceptable returns, beats inflation
-10% to 0% Poor Loss, but manageable
Below -10% Very Poor Significant loss, review strategy

Annualized ROI

Annualized ROI adjusts your return to show what you would earn per year, making it easier to compare investments with different time periods. This is especially useful for long-term investments.

Annualized ROI = ((1 + ROI)^(12/Months) - 1) Ă— 100%
Pro Tip:

Always consider inflation and taxes when evaluating ROI. A 5% ROI might seem good, but if inflation is 3%, your real return is only 2%. Also, different investments have different risk levels—higher ROI often means higher risk!

Why Use This Calculator?

Our ROI calculator helps you quickly assess investment performance, compare different investment opportunities, and make informed financial decisions. Whether you're evaluating stocks, real estate, business ventures, or personal projects, understanding ROI is crucial for financial success.

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