How it works
ROI shows total profit as a percentage of what you put in. Annualized return spreads that over the holding period, so you can compare investments held for different lengths of time.
Formula
ROI = (Returned − Invested) ÷ Invested × 100 Annualized = (Returned ÷ Invested)^(1/years) − 1
Example
$10,000 growing to $14,500 over 3 years: ROI = 45%, annualized ≈ 13.19% per year.
Assumptions & limitations
- Results are rounded for display.
Frequently asked questions
Does ROI include fees and taxes?
Only if you include them. Subtract fees from the amount returned for a more realistic figure.