ROI Calculator
Total ROI
0%
Annualized ROI
0%
Net Gain/Loss
$0
Gain Percentage
0%
ROI Comparison
How to Use the ROI Calculator
- Enter your initial investment amount
- Enter the final value of your investment
- Enter how long you held the investment
- View your total and annualized ROI
Understanding ROI
- Total ROI - Overall return for the entire period
- Annualized ROI - Yearly equivalent return for comparison
- Limitations - Doesn't account for risk or cash flow timing
- Use cases - Compare stocks, real estate, business investments
Frequently Asked Questions
What is ROI?
ROI (Return on Investment) measures the gain or loss on an investment relative to its cost. It's expressed as a percentage: ROI = (Gain - Cost) / Cost ร 100.
What's a good ROI?
A 'good' ROI depends on the investment type. Stock market averages 7-10% annually. Real estate often targets 8-12%. Business investments may require 15-25% or higher.
What's the difference between ROI and annualized ROI?
ROI shows total return regardless of time. Annualized ROI shows the equivalent yearly return, making it easier to compare investments held for different periods.
Does ROI account for time value of money?
Basic ROI doesn't account for when returns occur. For time-adjusted returns, use metrics like IRR (Internal Rate of Return) or NPV (Net Present Value).