ROI Calculator
Calculate investment returns, portfolio growth, and retirement savings.
Investment Details
Investment Information
Amount invested upfront
Current or projected value
Fees, taxes, maintenance, etc.
Investment duration
Risk & Tax Analysis
Current treasury rate
Investment risk level
Capital gains tax rate
Investment Benchmarks
ROI Analysis
Annualized ROI
Above Average performance
Total ROI
Overall return
Investment Grade
Very Good
Total Return
Gross profit
Net Profit
After costs
After-Tax ROI
Net of taxes
Tax Liability
22% rate
Investment Summary
Time-based Returns
ROI Tips
- • Compare ROI across similar time periods
- • Consider risk-adjusted returns for better analysis
- • Factor in all costs including taxes and fees
- • Use annualized ROI for multi-year investments
- • Benchmark against market averages
- • Consider opportunity cost of alternative investments
How it works
Return on investment measures how much you gained relative to what you put in, as a percentage. It's deliberately simple — gain over cost — which makes it great for quick comparisons but blind to time: a 30% return is very different over one year versus ten, so annualizing it makes returns comparable.
ROI & annualized ROI
ROI = (Final − Cost) ÷ Cost × 100 Annualized = [(Final ÷ Cost)^(1/years) − 1] × 100
- Cost
- total amount invested (include fees)
- Final
- value when sold / current value
- years
- holding period
Worked example
- Invested Cost = $10,000
- Sold for Final = $13,000
- Held for 3 years
- ROI = (13,000 − 10,000) ÷ 10,000 × 100 = 30%
- Annualized = (1.30^(1/3) − 1) × 100
30% total — but only ~9.1% per year once you account for the 3-year hold.
Good to know
- Plain ROI ignores time, so always annualize before comparing investments held for different lengths.
- Include every cost (fees, commissions, taxes) in “Cost” — leaving them out flatters the return.
- ROI says nothing about risk: a 30% return that risked a total loss isn't comparable to a 30% return from a safe bond.
Related Calculators
Frequently Asked Questions
How do I calculate ROI?
ROI = (gain from investment - cost of investment) / cost of investment x 100. Buying at $10,000 and selling at $13,000 is a 30% ROI. Include fees, commissions, and taxes for an honest figure.
What is annualized ROI and why does it matter?
Annualized ROI converts a total return into a per-year rate: (ending value / starting value)^(1/years) - 1. It lets you fairly compare a 30% gain over six years against a 10% gain over one year.
What counts as a good ROI?
Context is everything: the US stock market has averaged about 10% annually before inflation over the long run, bonds closer to 5%, and savings accounts less. Higher promised returns generally mean higher risk.
How is ROI different from IRR?
ROI ignores when cash flows happen; IRR (internal rate of return) accounts for timing, which matters when money goes in or comes out at different points. For irregular cash flows, IRR gives the truer annual rate.
Should ROI include fees, taxes, and inflation?
For real-world decisions, yes. Trading fees and taxes directly reduce your gain, and subtracting inflation (historically 2-3% per year) converts a nominal return into the real growth of your purchasing power.