Calculate return on investment (ROI) for stocks, real estate, business ventures, and marketing campaigns. Compare simple and annualized returns to evaluate investment performance and make smarter decisions.
$
$
$
Fees, taxes, or other costs
Simple ROI
50.00%
Gain: $5,000
Total Invested
$10,000
Net Gain/Loss
+$5,000
Investment vs Return
Invested
$10,000
Final Value
$15,000
Why Use ROI Calculator?
Return on Investment (ROI) is a fundamental metric for evaluating investment performance. Whether you're analyzing stocks, real estate, business investments, or any other asset, understanding your ROI helps you compare different opportunities and make informed decisions. Our calculator shows both simple and annualized returns for comprehensive analysis.
Frequently Asked Questions
What is the difference between simple and annualized ROI?
Simple ROI shows total return regardless of time. Annualized ROI shows the equivalent yearly return, making it easier to compare investments of different durations. A 50% return over 5 years is about 8.4% annualized.
What is a good ROI?
A 'good' ROI depends on the investment type and risk. Stock market averages about 7-10% annually. Real estate might yield 8-12%. Higher returns usually come with higher risk. Compare against benchmarks in your investment category.
Why include additional costs?
Transaction fees, taxes, maintenance costs, and other expenses reduce your actual return. Including these gives you a more accurate picture of your true investment performance.
What is the Rule of 72?
The Rule of 72 is a quick way to estimate how long it takes to double your money. Divide 72 by your annual return rate. At 8% annual return, your money doubles in about 9 years (72÷8=9).
How do I improve my ROI?
Improve ROI by reducing costs (lower fees, tax-efficient strategies), increasing returns (better investment selection), or both. Regular rebalancing and avoiding emotional decisions also help maintain good returns.