How to Use the ROI Calculator
Calculate your Return on Investment (ROI), annualized returns, and net profit instantly.
Steps
- Enter your Initial Investment amount.
- Enter your Final Return (the total amount you received back).
- (Optional) Enter the time period (in years) if you want to calculate Annualized ROI.
- Instantly view your ROI percentage, net profit, and a visual breakdown chart.
About This Tool
This calculator uses standard financial formulas to find absolute ROI ((Return - Investment) / Investment) and computes compound annualized growth rates (CAGR) when a time period is provided.
FAQs
1. What is Annualized ROI?
Annualized ROI (or CAGR) calculates what your average yearly return is. A 50% return over 5 years is less impressive than a 50% return over 1 year.
2. Do I include fees in the Initial Investment?
Yes. For the most accurate ROI, your initial investment should include all upfront costs, fees, and taxes.
3. Can it handle negative returns?
Yes, if your final return is lower than your initial investment, the tool will accurately display your net loss and negative ROI percentage.