How to use the ROI calculator
- Enter the amount invested and the final value you got back.
- Add the holding period in years to get an annualised figure.
- Include any fees — they come straight off your profit.
ROI vs annualised return
Plain ROI = (gain − cost) ÷ cost × 100. It's simple but ignores time, which makes it misleading on its own: a 35% return is excellent in one year and mediocre over ten. The annualised return (CAGR) fixes that by expressing the gain as a constant yearly rate — it's the only fair way to compare a quick flip against a long hold. Always look at both.
Benefits
- Shows ROI, net profit and the return multiple in one view.
- Calculates annualised return (CAGR) so you can compare different holding periods fairly.
- Includes a fees field, since costs come straight off your return.
- Private — calculated in your browser.
Limitations to know
- Figures are nominal — they do not adjust for inflation.
- It does not model taxes, which vary by country and asset.
- It assumes a single lump-sum investment, not ongoing contributions.
Common mistakes to avoid
- Comparing a plain ROI from a 10-year hold against a 1-year one — use the annualised figure.
- Leaving out fees and overstating your real return.
- Treating past return as a prediction of future performance.
Alternatives
For ongoing contributions use the Compound Interest Calculator; for simple percentage change use the Percentage Calculator.
Last updated: August 2026 · Reviewed by the AI Toolbox editorial team.
Frequently asked questions
What's a good ROI?
It depends entirely on the risk and the alternatives. Compare the annualised figure against what a low-risk option would have returned over the same period.
Should I include fees?
Yes — transaction costs, platform fees and taxes all reduce your real return. Put them in the fees box.
Does it account for inflation?
No — these are nominal figures. Subtract inflation to get the real return.
Is this financial advice?
No — it's a calculator for figures you supply. Past returns don't predict future ones.