FINANCEVELIX / Investment calculators
ROI calculator (return on investment)
FINANCEVELIX / CRYPTO
Crypto tools
Find the return on any investment from what you put in and what you got back, including dividends, interest and costs. Add a holding period or start and end dates to see the annualized ROI and compare investments held for different lengths of time.
ROI calculator
Use the same currency for every price, fee and amount. Changing this label does not convert values.
FINANCEVELIX / Your calculation
Your calculation
Enter your assumptions, then select Calculate.
FINANCEVELIX / Method
How ROI is calculated
ROI is the net gain divided by everything you put in: ROI = (amount returned + income − amount invested − costs) ÷ (amount invested + costs). Income such as dividends or interest counts as part of the return, and fees or taxes you paid count as part of the cost.
Example from FINRA: 2,000 invested in a stock that is worth 2,500 after 3 years and paid 120 in dividends gives a return of 620, or 31%.
ROI ignores time, so the annualized ROI puts it on a yearly basis: (1 + ROI)^(1 ÷ years) − 1. In the example, 1.31 to the power of 1/3 gives about 9.42% a year. The simple annual ROI, 31% ÷ 3 ≈ 10.33%, overstates it because it ignores compounding. With dates, the period is the number of days divided by 365.25.
The annualized ROI is the CAGR formula applied to money in and money out. For deposits or withdrawals at different times, an internal rate of return (IRR) is needed instead; this calculator does not model it.
Frequently asked questions
What is the difference between ROI and annualized ROI?
ROI is the total return over the whole holding period. Annualized ROI is the constant yearly rate that would produce the same total. A 50% ROI over 1 year is 50% a year, but over 5 years it is about 8.45% a year.
Can ROI be negative?
Yes. If you get back less than you put in, ROI is negative: getting back 800 from 1,000 is an ROI of −20%. The lowest possible value is −100%, when nothing comes back and no income was received.
How do I calculate ROI in a spreadsheet?
Use =(returned+income-invested-costs)/(invested+costs) and format the cell as a percentage. For the annualized ROI, use =(1+ROI)^(1/years)-1. With the FINRA example, =(2500+120-2000)/2000 returns 31%.