ROI vs annualized return
Plain ROI ignores time: 50% over ten years is far worse than 50% over two. The annualized figure puts investments on the same yearly footing so they can be compared.
Calculate return on investment, the gain or loss, and the yearly (annualized) return.
Return on investment
+35.00%
Gain of $3,500.00
Calculation
ROI = (final value − amount invested) ÷ amount invested × 100
Last reviewed by the OnlineToolPro team
Measures how much an investment made or lost as a percentage of what you put in, and — if you give a time period — the equivalent yearly return, so investments held for different lengths of time can be compared fairly.
How it works
3 simple steps. No experience needed.
Good to know
Plain ROI ignores time: 50% over ten years is far worse than 50% over two. The annualized figure puts investments on the same yearly footing so they can be compared.
FAQ
The steady yearly rate that would turn your starting amount into the final value. A 35% gain over 3 years is about 10.5% a year.
Include them in the final value for an accurate result — subtract fees and add any income you received.
Step-by-step help for getting more out of the roi calculator.
Explainer
How to calculate gross and net rental yield, the costs that turn 6% into 4%, and how to judge whether a buy-to-let's yield is actually good.
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How-to
The ROI formula with examples, why you must annualize to compare investments fairly, ROI for marketing, and what ROI leaves out.
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