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ROI Calculator
Calculate Return on Investment, annualized returns, and compare your performance against market benchmarks.
Currency
Calculation Method
Compare starting and ending investment values
Investment
The amount originally invested
Current or ending value of the investment
Optional Parameters
Include Time Period
Calculate annualized ROI
0.25 years30 years
Include Income
Dividends, interest, etc.
Return on Investment
25.00%
+25%
Annualized ROI
11.80%
CAGR over 2 years
Total Return
$2,500.00
Profit
profit
1.25x return multiple
6.1 years
Time to double (Rule of 72)
Return Composition
Capital Gain/Loss(25.0%)
$2,500.00Investment Summary
Initial Investment
$10,000.00
Total Cost Basis
$10,000.00
Final Value
$12,500.00
Benchmark Comparison
Your annualized return: 11.80%
S&P 500 (Historical)(10.00%)
+1.80%US Bonds(5.00%)
+6.80%Savings Account(2.00%)
+9.80%Inflation (Target)(2.50%)
+9.30%Detailed Metrics
| Initial Investment | $10,000.00 | Original amount invested |
| Total Cost Basis | $10,000.00 | Total amount invested including all costs |
| Capital Gain/Loss | $2,500.00 | Change in investment value |
| Total Return | $2,500.00 | Total profit or loss |
| ROI | $25.00 | Return as percentage of total cost |
| Annualized ROI | $11.80 | Annual equivalent return rate |
Understanding Return on Investment
ROI Formula
ROI = (Gain - Cost) / Cost x 100
ROI measures the percentage return relative to the cost of the investment. A positive ROI means profit; negative means loss.
Annualized ROI (CAGR)
CAGR = (Final/Initial)^(1/years) - 1
Annualized ROI normalizes returns for comparison across different time periods.
Key Insights
- Rule of 72: Divide 72 by your annual return rate to estimate years to double your money
- Total Return: Includes both capital gains and income (dividends/interest)
- Return Multiple: 2.0x means you doubled your investment
- Beat Inflation: Your real return is nominal return minus inflation
Limitations
- Does not account for risk - higher returns often mean higher risk
- Past performance does not guarantee future results
- Does not consider opportunity cost of capital