Calculate return on investment — net profit, ROI % and annualized return.
Return on Investment (ROI) is one of the simplest ways to judge whether an investment paid off — it compares what you put in against what you got back, expressed as a percentage. This calculator handles both the basic ROI figure and, when you provide a time period, an annualized return that lets you fairly compare investments held over different lengths of time.
Why does annualized ROI matter if I already have the total ROI?
A 20% return over 5 years is very different from a 20% return over 6 months. Annualizing lets you compare investments of different durations on equal footing — a fairer basis for judging performance.
What counts as a "good" ROI?
This depends heavily on the type of investment and time frame — a savings account, real estate, and stock market investment all carry different risk levels and reasonable return expectations. Historical stock market averages are often cited around 10% annually, but this varies by period and market.
Does ROI account for risk?
No — ROI only measures the return itself, not the risk taken to achieve it. A high-ROI investment carrying much higher risk isn't automatically "better" than a lower-ROI, lower-risk one; that depends on your own risk tolerance.