How much did an investment return?

Return on investment (ROI)

Calculate the return on investment (ROI) and annualized return from an initial and final amount.

Formula

ROI = (final value − initial investment) / initial investment · annualized = (final/initial)^(1/years) − 1

Assumptions

• Does not account for additional contributions/withdrawals during the holding period, fees, or taxes.

Frequently asked questions

What's the difference between total ROI and annualized return?
Total ROI is the whole gain over the entire holding period, regardless of how long it took. Annualized return converts that into an equivalent yearly rate, which makes investments of different lengths comparable.

Why is a 30% ROI over 10 years a much lower annualized number?
Because that gain is spread across 10 years, not earned in one. A 30% total return over 10 years annualizes to only about 2.7% per year — very different from a 30% return in a single year.