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Measure the return on an investment as a percentage and, if you know the time held, per year.
How the calculation works
ROI compares your profit to the amount invested. Annualized ROI converts the total return into an equivalent yearly growth rate.
Formula used
ROI = (Final value − Amount invested) ÷ Amount invested × 100; Annualized ROI = ((Final ÷ Invested)^(1 ÷ years) − 1) × 100
Example
Investing $5,000 and selling for $7,500 after 3 years gives a $2,500 profit, a 50% ROI and a 14.47% annualized ROI.
Frequently asked questions
Does ROI include fees and taxes?
Only if you include them in the amounts you enter.
Why use annualized ROI?
It lets you compare investments held for different lengths of time.
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Results are estimates for general information only and are not professional financial, medical or legal advice.