Total ROI and yearly ROI
The total ROI tells you the overall gain as a percentage of the money you put in. The annualised ROI spreads that gain over the years you held the investment, with compounding, so deals of different lengths can be compared on the same scale.
Time held
Choose years if you already know the period, or pick two dates and the tool counts the days for you, using 365.25 days per year.
Next steps
- See how a regular return grows over time with the compound interest calculator.
- Compare with fixed returns using the simple interest calculator.
ROI looks only at the past. It does not promise future returns and does not measure risk.
Frequently asked questions
What is ROI?
Return on investment measures how much you gained or lost compared with what you put in: ROI = (final value − amount invested) ÷ amount invested × 100.
What is annualised ROI?
It is the steady yearly rate that would grow your money from the starting amount to the final value over the time you held it. It lets you compare a 3-year deal with a 1-year deal fairly. It uses (final ÷ invested)^(1 ÷ years) − 1.
Why is annualised ROI lower than total ROI divided by years?
Because returns compound. A 50% total gain over 3 years is about 14.5% a year, not 16.7%, since each year's gain also earns a return.
Can ROI be negative?
Yes. If the final value is lower than the amount invested, the ROI is negative, meaning a loss.
What costs should I include?
Add every cost to the amount invested (fees, repairs, delivery) and subtract any costs when you sell from the final value. That gives a true ROI.