ROI Calculator: Return on Investment, Total and Annualized
Find the gain on an investment, its total return as a percent of what you put in, and the yearly rate that return works out to over the time you held it.
ROI is your gain divided by what you invested. Add the change in value to any income the investment paid, then divide by the amount invested. For example, $2,000 that grows to $2,500 and pays $120 in dividends gained $620, a 31% return; held for 3 years, that is 9.42% a year.
This calculator turns the amounts you enter into a total and annualized return for general education. It does not know what you own, how risky it is, or how it is taxed, and it is not financial advice, investment advice, tax advice or a recommendation to buy, sell or hold anything. A past return does not predict a future one, and the annualized rate is a smoothed figure, not what happened in any single year. Results are before taxes and leave out fees, inflation and income timing unless you build them into the amounts you enter. Consult a qualified financial or tax professional about your own situation.
Dollars take up to two decimals. Income is interest, dividends or rent you were paid along the way. Leave years blank to skip the annualized figure.
Return on investment
31.00%
9.42% a year over 3 years, compounded
- Change in value
- $500.00
- Income received
- $120.00
- Total gain
- $620.00
Before taxes and any fees you did not enter. Income counts as if received at the end.
Embed this calculator on your site →
About the ROI Calculator
Return on investment answers one question: for every dollar you put in, how much came back on top? The gain has two parts, the change in value from what you paid to what it is worth now, and any income it paid along the way, such as dividends, interest or rent. Leaving the income out understates the return; leaving out a drop in value overstates it. The total return alone does not say how fast the money grew, which is why the annualized figure matters. It asks what steady yearly rate, compounded, would turn the starting amount into the ending one over the years you held it. Dividing the total by the years is a common shortcut, but it overstates the rate: 31% over 3 years is 10.33% a year by simple division and 9.42% a year compounded. Losses work the same way, so $10,000 that falls to $8,000 over 2 years is a 20% loss, or 10.56% a year. Enter fees and commissions by lowering the value or raising the amount invested.
Frequently asked questions
How do you calculate ROI?+
Start with the change in value: $2,500 minus $2,000 is $500. Add the $120 of dividends for a $620 gain, then divide by the $2,000 you invested: 31%. Use the sale amount after any selling commission, or the return will be overstated.
What is annualized ROI?+
It is the yearly rate that, compounded, produces the same total return over the same time. The formula is (1 + total return) raised to the power 1 / years, minus 1. A 31% total over 3 years works out to 9.42% a year, lower than the 10.33% you get by dividing by 3.
Can I compare investments held for different lengths of time?+
Compare their annualized returns, not their totals. A 40% total over 10 years is about 3.42% a year, while a 20% total over 2 years is about 9.54% a year, so in these two hypothetical examples the smaller total is the faster rate.
Does this include taxes and fees?+
No. The result is before tax, and it counts only the costs you build into the amounts you enter. To include a commission, add it to the amount invested or subtract it from the value now.
Total return as the change in value plus income, divided by the amount invested, and annualized return as (1 + return)^(1 / years) - 1, with the $2,000 example: FINRA, Evaluating Performance.
Embed this calculator
Free to use on your own site. Paste this snippet where you want the roi calculator to appear — it resizes itself automatically.
<iframe
src="https://manytools.co/embed/roi-calculator"
title="ROI Calculator by ManyTools"
data-manytools="roi-calculator"
width="100%"
height="640"
loading="lazy"
style="border:0;width:100%;max-width:720px"></iframe>
<script>
(function () {
window.addEventListener("message", function (e) {
if (e.origin !== "https://manytools.co") return;
var d = e.data || {};
if (d.type !== "manytools:embed:height" || d.slug !== "roi-calculator") return;
var f = document.querySelector('iframe[data-manytools="roi-calculator"]');
if (f && d.height) f.style.height = d.height + "px";
});
})();
</script><a href="https://manytools.co/finance/roi-calculator">ROI Calculator by ManyTools</a>