ROI Calculator
Enter what you put in, what it is worth now and how long you held it — this gives you net profit, total ROI, and the annualized return that actually lets you compare two investments.
ROI = (final value − initial investment − fees) ÷ (initial investment + fees) × 100. Annualized ROI compounds that result over the holding period, so a 3-year and a 10-year investment can be compared fairly. Past performance is not a forecast — this is an arithmetic tool, not investment advice.
Frequently asked questions
What is a good ROI?
It depends entirely on the risk and the time frame, which is why the annualized number matters more than the raw one. A 50% return sounds great until you learn it took ten years — that is about 4.1% a year, worse than a savings bond. As a rough yardstick, the S&P 500 has averaged close to 10% a year before inflation over the long run, so an investment returning 12%+ annualized over many years is doing well, and anything claiming 30% a year forever deserves suspicion.
How do I calculate annualized ROI?
Annualized ROI = (final value ÷ total invested)^(1 ÷ years) − 1. Total invested is your initial outlay plus fees. Example: $10,000 in, $15,000 out after 3 years → 1.5^(1/3) − 1 = 14.5% a year. Note this is a compound annual growth rate, not the simple average of yearly returns — a fund that goes +50% then −50% has an average return of 0% but an annualized return of −13.4%.
Do fees and commissions count in ROI?
Yes — include every cost you had to pay to own and exit the investment: brokerage commission, platform or account fees, closing costs on property, and taxes on the gain if you want an after-tax figure. Leaving them out is the most common way people overstate their returns. A 1% annual fund fee does not sound like much, but over 30 years it can quietly eat a quarter of your final balance.
Why is my ROI different from my brokerage statement?
Brokerages usually report time-weighted return, which removes the effect of when you added or withdrew money. This calculator uses money-weighted logic on a single lump sum: what you put in, what you got out, and how long it was invested. If you bought in several instalments, calculate each tranche separately or use an IRR calculator — averaging the percentages instead will give you a wrong answer.