Calculate your Return on Investment with annualized returns. Analyze the performance of stocks, real estate, business ventures, or any investment over time.
Enter your Initial Investment amount — the original capital you put into the investment at the start.
Enter the Final Value — the total amount the investment is worth now, including your original capital and all gains.
Optionally, enter any Additional Contributions you made during the investment period (beyond the initial investment).
Specify the Investment Duration in years to calculate the annualized return rate.
Click "Calculate ROI" to see your total profit, overall ROI percentage, annualized return, and a visual investment health assessment.
ROI measures the profitability of an investment as a percentage of the total cost. The annualized ROI formula accounts for the time period, allowing you to compare investments of different durations on equal footing: Annualized ROI = ((Final Value / Cost)^(1/n) - 1) × 100, where n is the number of years.
You invested $10,000 in stocks. After 2 years, the portfolio is worth $13,000. Your profit is $3,000, giving a total ROI of 30%. The annualized ROI is 14.02%, meaning your investment grew at an equivalent rate of about 14% per year on a compound basis.
A marketing campaign cost $5,000 in labor plus $2,000 in ad spend, totaling $7,000 invested. It generated $12,000 in revenue. The profit is $5,000, yielding an ROI of 71.43% ($5,000 profit on $7,000 invested).
You put a $50,000 down payment on a property and sold it 5 years later, netting $80,000 after all costs. Your profit is $30,000, for a total ROI of 60%. The annualized ROI is 9.86%, reflecting the compound annual growth rate over the 5-year holding period.
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