ToolsArena.Net

ROI Calculator

Calculate return on investment and annualised return from an initial investment.

Understand Your Investment Performance

Evaluate the return on an investment and annualised return over a period of years.

Formula

\text{ROI} = \frac{Final - Initial}{Initial} \times 100\% \quad \text{Annualised Return} = \left(\frac{Final}{Initial}\right)^{1/n} - 1

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How to Use?

  • Enter the initial investment amount and the final value of your investment.
  • Specify the investment period in years.
  • View the net profit/loss, ROI percentage, and annualised return.

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Worked Examples

Example: $1,000 grows to $1,500 in 2 years

Given:
initialInvestment: 1000
finalValue: 1500
investmentYears: 2
Result:
netProfit: 500
roi: 50
annualised: 22.47
roi_status: ok

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Positive ROI

Net profit is positive; your investment is growing.

Negative ROI

Net loss occurs; review your investment strategy.

Table: ROI Examples

InitialFinalYearsNet ProfitROIAnnualised
$1,000$1,5002$50050%22.47%
$5,000$4,5003-$500-10%-3.44%

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FAQs

What is ROI?

ROI (Return on Investment) measures the gain or loss relative to the initial investment.

What is annualised return?

It shows the yearly return equivalent to the total ROI over the investment period.

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