ROI Calculator: Measure Investment Performance with Precision

Quickly gauge investment performance: enter starting amount, ending value, holding years and optional fees. The tool returns ROI, net ROI and annualized figures—vital context because the S&P 500 averaged 12.4 % annually over the past decade (S&P Dow Jones Indices, 2023).

Enter the amount you initially invested.

Enter the final value of your investment.

Enter the duration of your investment in years (optional).

Enter any fees or taxes associated with the investment (optional).

Disclaimer: This calculator provides estimates and should be used for informational purposes only. Consult a financial advisor for personalized advice.

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How to use the tool

  • Initial Investment ($): Type the capital you deployed.
    Example A: $12,000  Example B: $45,500
  • Final Value ($): Enter the amount you now hold or expect to receive.
    Example A: $18,000  Example B: $59,900
  • Investment Duration (years): Add holding time to see annualized returns.
    Example A: 3  Example B: 6.5
  • Fees & Taxes ($): Include brokerage, maintenance or tax costs for net results.
    Example A: $600  Example B: $2,150

Underlying formulas

$$ ROI = rac{Final\;Value – Initial\;Investment}{Initial\;Investment} \times 100 $$
$$ Net\;ROI = rac{Final\;Value – Initial\;Investment – Fees}{Initial\;Investment} \times 100 $$
$$ Annualized\;ROI = \left(1+ rac{ROI}{100}\right)^{1/Duration}-1 \times 100 $$
$$ Net\;Annualized\;ROI = \left(1+ rac{Net\;ROI}{100}\right)^{1/Duration}-1 \times 100 $$

Worked example A

  • Initial: $12,000
  • Final: $18,000
  • Fees: $600
  • Duration: 3 years
  • ROI: 50 %
  • Net ROI: 45 %
  • Annualized ROI: 14.46 %
  • Net Annualized ROI: 13.19 %

Worked example B

  • Initial: $45,500
  • Final: $59,900
  • Fees: $2,150
  • Duration: 6.5 years
  • ROI: 31.76 %
  • Net ROI: 27.03 %
  • Annualized ROI: 4.28 %
  • Net Annualized ROI: 3.71 %

Quick-Facts

  • Average U.S. equity return 1926-2023: 10.3 % per year (Ibbotson SBBI Yearbook, 2024).
  • 10-year S&P 500 CAGR: 12.4 % (S&P Dow Jones Indices, 2023).
  • Typical online brokerage fee: $0–$6.95 per trade (FINRA Investor Insight, 2023).
  • Long-term capital-gains tax rate: 0–20 % depending on income (IRS Pub 550, 2023).

What is ROI?

ROI is the percentage profit earned on your investment, found by dividing net gain by original cost (Investopedia, 2024).

How do fees affect your return?

Every 1 % in annual costs can cut a portfolio’s ending value by roughly 17 % over 20 years (SEC Investor Bulletin, 2022).

Why annualize ROI?

Annualization allows apples-to-apples comparison across different holding periods, following the compound-return method recommended by the CFA Institute (CFA Institute, 2022).

What is a “good” ROI?

Beating the market’s 10-year CAGR (12.4 %) signals above-average performance (S&P Dow Jones Indices, 2023).

Can ROI be negative?

Yes—if final value plus income is less than cost, ROI falls below 0 %, indicating a loss (Morningstar Guide, 2023).

How does ROI differ from CAGR?

ROI measures total gain; CAGR expresses average yearly growth and always accounts for time (Nasdaq Glossary, 2023).

Is ROI affected by inflation?

Real ROI subtracts inflation; 3 % inflation can wipe out one-quarter of a 4 % nominal return (BLS CPI Data, 2023).

How can you improve ROI?

  • Lower fees through low-cost funds.
  • Hold tax-efficient assets in taxable accounts.
  • Reinvest dividends for compounding (Vanguard Study, 2023).

Important Disclaimer

The calculations, results, and content provided by our tools are not guaranteed to be accurate, complete, or reliable. Users are responsible for verifying and interpreting the results. Our content and tools may contain errors, biases, or inconsistencies. We reserve the right to save inputs and outputs from our tools for the purposes of error debugging, bias identification, and performance improvement. External companies providing AI models used in our tools may also save and process data in accordance with their own policies. By using our tools, you consent to this data collection and processing. We reserve the right to limit the usage of our tools based on current usability factors. By using our tools, you acknowledge that you have read, understood, and agreed to this disclaimer. You accept the inherent risks and limitations associated with the use of our tools and services.

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