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ROI Calculator

Calculate Return on Investment with annualized returns.

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Enter the amount you originally invested, the current or final value of the investment, and the number of years held. Optionally include annual dividends or income. The calculator will show both simple and annualized ROI.

Examples

Stock Investment

You invested $10,000. After 5 years, it is worth $15,000. Simple ROI = ($15,000 - $10,000) / $10,000 x 100 = 50%. Annualized ROI = (15000/10000)^(1/5) - 1 = 8.45% per year.

With Dividends

You invested $10,000 for 3 years. Final value is $11,000 and you received $500/year in dividends ($1,500 total). Total return = $1,000 + $1,500 = $2,500. Simple ROI = 25%. Annualized ROI = 7.72%.

Frequently Asked Questions

What is the difference between simple and annualized ROI?
Simple ROI is the total percentage return over the entire period. Annualized ROI converts that to an equivalent yearly rate, making it easier to compare investments held for different lengths of time.
Can ROI be negative?
Yes. If the final value plus any dividends is less than your initial investment, the ROI is negative, indicating a loss.
Is ROI the same as CAGR?
Annualized ROI is essentially the same as CAGR (Compound Annual Growth Rate) when dividends are excluded. Both measure the equivalent annual compounded return.
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Compound Interest Calculator
Rental Property Calculator
Future Value Calculator

Quick Tips

  • •Always use annualized ROI when comparing investments with different time horizons.
  • •Include all income (dividends, interest, rent) for a complete picture.
  • •ROI does not account for risk. Higher ROI often comes with higher risk.
  • •Consider inflation: a 5% ROI with 3% inflation is only about 2% real return.

How to Use This Calculator

Enter the amount you originally invested, the current or final value of the investment, and the number of years held. Optionally include annual dividends or income. The calculator will show both simple and annualized ROI.

Understanding the Formula

Simple ROI = ((Final Value - Initial Investment + Total Dividends) / Initial Investment) x 100. Annualized ROI = ((Final Value + Total Dividends) / Initial Investment)^(1/Years) - 1.

Examples

Stock Investment

You invested $10,000. After 5 years, it is worth $15,000. Simple ROI = ($15,000 - $10,000) / $10,000 x 100 = 50%. Annualized ROI = (15000/10000)^(1/5) - 1 = 8.45% per year.

With Dividends

You invested $10,000 for 3 years. Final value is $11,000 and you received $500/year in dividends ($1,500 total). Total return = $1,000 + $1,500 = $2,500. Simple ROI = 25%. Annualized ROI = 7.72%.

Frequently Asked Questions

What is the difference between simple and annualized ROI?

Simple ROI is the total percentage return over the entire period. Annualized ROI converts that to an equivalent yearly rate, making it easier to compare investments held for different lengths of time.

Can ROI be negative?

Yes. If the final value plus any dividends is less than your initial investment, the ROI is negative, indicating a loss.

Is ROI the same as CAGR?

Annualized ROI is essentially the same as CAGR (Compound Annual Growth Rate) when dividends are excluded. Both measure the equivalent annual compounded return.