ROI Calculator
Measure the efficiency of your investments. Calculate Return on Investment (ROI) and annualized returns.
ROI Inputs
Used for annualized calculation.
Total ROI
50.00%
Net Profit/Loss
$500.00
Annualized ROI
50.00%
What is Return on Investment (ROI)?
ROI is a financial metric used to evaluate the efficiency or profitability of an investment. It measures the amount of return on an investment relative to the investment's cost.
How to Calculate ROI
The standard ROI formula is:
ROI = [(Current Value of Investment - Cost of Investment) / Cost of Investment] × 100
Why is Annualized ROI Important?
Simple ROI doesn't account for time. An investment that returns 50% over 5 years is very different from one that returns 50% in 1 year. Annualized ROI allows you to compare investments held for different periods on an equal footing.
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