What is ROI (Return on Investment)?

ROI (Return on Investment) is a performance measure used to evaluate the profitability of an investment. It's calculated as: ROI = (Final Value - Initial Investment) / Initial Investment × 100%. For example, if you invested $1,000 and it grew to $1,500, your ROI is 50%.

What's a good investment return?

Historically, the S&P 500 has averaged about 10% annual returns over the long term. However, 'good' returns depend on your goals, risk tolerance, and investment type. Real estate might average 8-12%, while bonds typically return 3-5%. Any return above inflation (usually 2-3%) preserves purchasing power.

How do I calculate profit from my investment?

To calculate profit, subtract your initial investment from the final value: Profit = Final Value - Initial Investment. For example, if you invested $5,000 and it's now worth $6,200, your profit is $1,200.

Investment Return Calculator | MoneyCalc - Calculate ROI & Annualized Returns

Name: Investment Return Calculator
Author: MoneyCalc

Initial Investment ($)

Final Value ($)

Investment Period (Years)

Total Return

$0

ROI

0%

Annualized Return

0%

Status

-

📖 How to Use This Calculator

1. Enter Your Initial Investment

Input the total amount you originally invested. This is your starting principal.

2. Enter the Final Value

Input what your investment is worth now (or when you sold it). This includes all gains or losses.

3. Enter the Time Period

Specify how many years you held the investment. You can use decimals (e.g., 2.5 years).

4. Review Your Results

The calculator shows your total return (profit/loss), ROI percentage, and annualized return (CAGR).

💡 Understanding Investment Returns

What is ROI?

ROI (Return on Investment) measures the profitability of your investment as a percentage. It's calculated as:

ROI = (Final Value - Initial Investment) / Initial Investment × 100%

A positive ROI means you made a profit, while a negative ROI means you lost money.

What is Annualized Return (CAGR)?

Annualized return, also called CAGR (Compound Annual Growth Rate), shows the average yearly return assuming profits are reinvested. It's calculated as:

CAGR = (Final Value / Initial Value)^(1/Years) - 1

This metric is useful for comparing investments held for different time periods.

Example Calculation

If you invested $10,000 and it grew to $15,000 over 5 years:

Total Return: $5,000 profit
ROI: 50% total return
Annualized Return: 8.45% per year

This means your money grew at an average rate of 8.45% per year.

❓ Frequently Asked Questions

What's the difference between ROI and annualized return?

ROI shows your total return over the entire period, while annualized return (CAGR) breaks it down to an average yearly rate. For example, a 50% ROI over 5 years equals about 8.45% annualized return.

What's considered a good investment return?

The S&P 500 has historically averaged about 10% annual returns. However, "good" depends on your investment type, risk level, and time horizon. Real estate might average 8-12%, while bonds typically return 3-5%.

Should I consider taxes and fees?

This calculator shows gross returns. For a complete picture, subtract taxes (capital gains tax) and any fees (brokerage, management fees) from your final value before calculating.

Can I use this for stocks, real estate, or crypto?

Yes! This calculator works for any investment type. Just enter your initial investment and final value, regardless of the asset class.

Is my data private?

Yes. All calculations happen in your browser. Your data never leaves your device and is completely private.

📈 Investment Return Calculator

Initial Investment

Final Value