ROI Calculator
Return on investment as a percentage, plus annualised return.
ROI Calculator
Fast online calculation engine
What does ROI Calculator do?
Enter what you put in and what you got out to see the return on investment as a percentage and in absolute terms. Add a holding period and it also calculates the annualised return, which is the only fair way to compare investments of different lengths.
How to Use ROI Calculator
- 1Enter the amount investedInclude fees and costs for an honest figure.
- 2Enter the final valueWhat the investment is worth or sold for.
- 3Add the holding periodOptional; needed for the annualised return.
Key Features
- Total ROI percentage and absolute gain or loss
- Annualised return (CAGR) when you supply a holding period
- Optional additional costs so fees and commissions are included
- Clearly reports a negative return rather than hiding a loss
Frequently Asked Questions
What is the ROI formula?
ROI = (final value − initial investment) ÷ initial investment × 100. Turning £5,000 into £6,500 is a 30% return.
Why does annualised return matter?
A 30% return over one year is excellent; the same 30% over ten years is about 2.7% a year, which barely beats inflation. Annualising puts investments of different durations on the same footing.
How is annualised return calculated?
CAGR = ((final ÷ initial)^(1 ÷ years) − 1) × 100. It is undefined if either value is zero or negative, and the calculator says so rather than showing a misleading number.
Should I include fees in the investment amount?
Yes. Brokerage, stamp duty, management fees and taxes are real costs. Excluding them flatters the return, sometimes dramatically on small or short-held positions.
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