ROI calculator
See how much an investment made or lost, as a total percentage and as a yearly rate.
Results
Return on investment
45%
Your money grew by this share of what you put in over 3 years, which is about 13.2% a year.
- Money made
- $4,500.00
- Yearly return
- 13.19%Average return each year, with gains building on gains
Invested and returned
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How it works
ROI (return on investment) compares what an investment gave back with what you put in. The total ROI is the gain as a share of the amount invested. The yearly return turns that total into the steady yearly rate that would compound to the same result, so investments held for different lengths of time can be compared fairly.
Formula
- Gain = amount returned − amount invested
- ROI = gain ÷ amount invested × 100
- Yearly return = ((returned ÷ invested)^(1 ÷ years) − 1) × 100
Frequently asked questions
What is the difference between ROI and the yearly return?
ROI is the whole gain over the full time you held the investment. The yearly return spreads that gain into an equal yearly rate, with each year's gain building on the last (also called annualized ROI). A 50% gain over three years works out to about 14.5% a year, which is easier to compare with a savings rate or another investment.
Should fees, taxes and income be included?
Yes, for a true picture. Add any dividends, interest or rent you received to the amount returned, and subtract fees, commissions and taxes you paid. Leaving costs out makes the return look better than it really was.
Can ROI be negative?
Yes. If you get back less than you put in, the ROI is negative and shows how much of your money was lost. An ROI of −100% means nothing at all came back.
Why is the yearly figure so large when I held it for a short time?
The yearly figure assumes the same return repeats for a whole year, with gains building on gains. A 10% gain in one month would compound to over 200% a year, which rarely happens in practice. For periods under a year, the total ROI is usually the more honest number.
Related calculators
- Investment calculatorSee what investing every month could grow to, with a yearly increase and an optional lump sum.
- Compound interest calculatorSee how savings grow when interest earns interest, with an optional amount added each month.
- IRR calculatorWork out the return (IRR) and today's value (NPV) of money you put in and get back over time.
- Payback period calculatorFind how long an investment takes to earn back its cost, with or without valuing later money in today's terms.
Results are estimates only, not financial advice. Read the disclaimer.