Calcs4All

APR 23 · 2026

ROI calculator

Calculate total ROI and annualized ROI from an initial investment, final value or gain, and an optional holding period.

What this calculator covers

Use this ROI calculator to compare what an investment started with against what it ended with and express that change as a return percentage.

When a holding period is entered, the tool also annualizes the return so total results from different time horizons are easier to compare.

Frequently asked questions

What is the difference between total ROI and annualized ROI?
Total ROI measures the overall gain relative to the initial investment regardless of how long it took. Annualized ROI converts that total into an equivalent yearly rate, making it possible to compare investments held for different lengths of time on a common basis.
How is annualized ROI calculated?
Annualized ROI uses a compound annual growth rate approach: (final value / initial investment) raised to the power of (1 / years) minus 1. A 50% total return over 3 years annualizes to roughly 14.5% per year, not 16.7%, because of compounding.
Can ROI be negative?
Yes. If the final value is less than the initial investment, the gain is negative and ROI is negative, indicating a loss relative to the original amount invested.
Does this account for taxes or fees?
No. The result reflects the raw return between the initial investment and the final value. If you want the after-tax or after-fee return, reflect those costs in the values you enter — for example by using the net proceeds after fees as the final value.

Tool

Run the calculation

$
$
yr

RESULT · ROI

â„–172

Primary result

37.50%

$10,000.00 growing to $13,750.00 produces ROI of 37.50%, which annualizes to 11.20% over 3 years.

Final value
$13,750.00
Gain
$3,750.00
ROI
37.50%
Annualized ROI
11.20%

Step-by-step solution

  1. 1.Find dollar gain: $13,750.00 - $10,000.00 = $3,750.00.
  2. 2.Divide gain by the initial investment to convert dollars into ROI percent 37.50%.
  3. 3.Annualize the return across 3 years to compare the result with yearly growth rates.

Walkthrough

Visual walkthrough

ROI starts with the total gain on the initial outlay, then optionally converts that total return into an annualized rate when a holding period is known.

  1. 01

    Measure the total gain

    $13,750.00 - $10,000.00 = $3,750.00

    This strips the investment back down to the value created above the original capital base.

  2. 02

    Scale gain by the initial investment

    $3,750.00 ÷ $10,000.00

    ROI shows how large the gain was relative to the money first put at risk.

  3. 03

    Annualize if a holding period is available

    Annualized ROI smooths the total return into an equivalent yearly rate so different time horizons can be compared more fairly.

    37.50% ROI