ROI Calculator
Return on investment, as a percentage and annualised.
How it works
ROI is (gain - cost) / cost. Simple, and easy to misuse: it ignores time entirely. Doubling your money is a triumph in one year and mediocre over twenty, but plain ROI reports both as 100%.
The annualised figure fixes this by asking what constant yearly rate would have produced the same result. Compare investments on that number, not on raw ROI.
Common questions
ROI or annualised return?
Annualised, whenever the holding periods differ. Raw ROI is only comparable between investments held for the same length of time.
Related calculators
CAGR CalculatorCompound annual growth rate — the smooth rate that connects two values.Compound Interest CalculatorWhat a balance grows to with regular contributions and compounding.NPV & IRR CalculatorNet present value and internal rate of return for a stream of cash flows.EBITDA CalculatorEarnings before interest, tax, depreciation and amortisation — plus margin.