Simple ROI Calculator
Calculate return on investment (ROI) and annualized ROI for an investment over time.
Investment Amounts
The initial amount you invested. Represents the total upfront cost of the investment.
The final value of the investment. Can represent proceeds from a sale or the current value.
Enter investment duration in years
Select start and end dates
Investment Length
Duration of the investment in years (can include decimals).
Results
Investment gain
Profit or loss from the investment (amount returned minus amount invested).
ROI
Simple return on investment. Expressed as a percentage of the amount invested.
Annualized ROI
Compound annual growth rate (CAGR). The equivalent annual return over the investment period.
Investment length
Total duration of the investment. Shown to provide context for the annualized return.
Investment Breakdown
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About this calculator
This Simple ROI Calculator helps estimate return on investment (ROI) and annualized ROI for an investment over a specified time period.
ROI shows the total percentage gain or loss relative to the amount invested. Annualized ROI, also known as compound annual growth rate (CAGR), adjusts that return to show the equivalent yearly growth rate.
Use this calculator to compare investments with different holding periods on an apples-to-apples basis.
What each input means
- Amount invested is the initial amount you invested. It represents the total upfront cost of the investment.
- Amount returned is the final value of the investment. It can represent proceeds from a sale or the current value.
- Investment time is how long the investment was held. This is used to calculate annualized ROI (CAGR).
- Investment length is the duration of the investment in years. It can include decimals for partial years.
Understanding ROI and annualized ROI
Return on investment (ROI) is a widely used metric that measures how much profit or loss an investment generates relative to its cost.
The basic ROI formula is: ROI = (Amount Returned − Amount Invested) ÷ Amount Invested.
While ROI is useful for understanding total performance, it does not account for time. An investment that doubles in one year is very different from one that doubles in ten years.
Annualized ROI, or compound annual growth rate (CAGR), solves this by expressing returns as a yearly growth rate over the investment period. This calculator shows both metrics to provide a clearer picture of performance.
Key levers that influence ROI
- Investment size – Larger investments magnify gains and losses.
- Final value – Higher returns increase both ROI and annualized ROI.
- Time horizon – Longer holding periods reduce annualized returns for the same total gain.
Key assumptions & limitations
- Single start/end values – Assumes a single initial investment and final value.
- No interim cash flows – Does not model interim cash flows, dividends, or additional contributions.
- No taxes, fees, or inflation – Taxes, fees, and inflation are not included.
- Even compounding assumption – Assumes returns compound evenly over time.
- Estimates only – Results are estimates, not investment advice.
This calculator is designed for high-level comparison, not detailed performance analysis.