ROI Calculator
Calculate return on investment (ROI) as both a percentage and annualized rate. Compare investments held for different lengths of time on equal footing.
Inputs
Used for annualized ROI.
Total ROI
—
Net gain
—
Annualized ROI (CAGR)
—
Multiple of original
—
About ROI Calculator
Total ROI vs. annualized
Total ROI ignores time — 50% over 1 year and 50% over 10 years look the same. Annualized (CAGR) divides by years to compare investments held for different periods fairly.
What’s a good ROI?
Depends on risk. Long-term US stock market average: ~10% annualized. High-yield bonds: 4-6%. Treasury bills: 3-5%. Real estate: highly variable. Compare against the risk-free rate plus a fair risk premium.
Limitations
ROI doesn’t capture risk, volatility, taxes, or liquidity. Two investments with the same ROI can have very different risk profiles. Use it as one input among many.