Why does annualized ROI matter?

A 50% ROI over 1 year is a very different result than a 50% ROI over 10 years — annualizing lets you compare investments held for different lengths of time on equal footing.

ROI Calculator

Investing

Calculate return on investment, with an annualized ROI option for multi-year holdings.

Display currency

Changing the display currency only changes the symbol shown — amounts aren't converted, since this tool doesn't use live exchange rates.

Initial investment cost

Final value / return

Holding period (years, for annualized ROI)

ROI

Annualized ROI:

Net gain:

How this is calculated

ROI = (Return − Cost) ÷ Cost × 100. Annualized ROI = (Return ÷ Cost)^(1 ÷ Years) − 1, which accounts for how long the money was invested.

Frequently asked questions

Why does annualized ROI matter?: A 50% ROI over 1 year is a very different result than a 50% ROI over 10 years — annualizing lets you compare investments held for different lengths of time on equal footing.

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