ROI Calculator

Use the ROI calculator to measure how much money you made or lost on an investment. ROI stands for Return on Investment.

ROI Calculator

Calculate your Return on Investment (ROI) and Annualized Growth

$
Final value of the investment (sold or withdrawn).
$
Time held in years.
Transaction costs (commissions).
$
Estimated tax on profit (e.g., 15%, 20%).
%
Total ROI
0.00%
Annualized: 0.00%
Net Profit
$0
Total Cost
$0

Common Questions About ROI

What is ROI?
ROI (Return on Investment) is a performance measure used to evaluate the efficiency or profitability of an investment. It is calculated by dividing the net profit from the investment by the initial cost of the investment, expressed as a percentage.
What is Annualized ROI?
While standard ROI calculates total growth over the entire holding period, Annualized ROI (or CAGR) shows the average yearly growth rate, assuming profits are reinvested. This allows you to compare investments held for different lengths of time (e.g., a 1-year stock gain vs. a 5-year real estate hold).
What is considered a “Good” ROI?
A “good” ROI depends on the risk tolerance and the asset class. Generally, the stock market historically returns about 10% annually (before inflation). Real estate often targets 8-15%. A positive ROI greater than current inflation rates is typically considered a successful investment.
How does Inflation affect ROI?
The calculator shows Nominal ROI (mathematical return). To find the Real ROI (purchasing power gain), you would subtract the inflation rate from your ROI percentage. For example, if your ROI is 8% and inflation is 3%, your real return is roughly 5%.
Why include Fees and Taxes?
Many investors only look at the “Gross Return” (Invested vs. Returned). However, transaction fees and capital gains taxes significantly reduce your actual wallet. Including them provides your Net ROI, which is the only number that matters for your actual wealth.

What Is an ROI Calculator

An ROI calculator measures how much money you made or lost on an investment. ROI stands for Return on Investment. This calculator takes your starting amount and ending amount, then shows your profit as a percentage. It also factors in costs like fees and taxes that eat into your gains, giving you a realistic picture of your actual returns.

Input Fields Explained in the ROI Calculator

Amount Invested

This is your starting capital. If you bought stock for $10,000 or put $50,000 into a rental property, that's your invested amount. Don't include any fees here—those go in a separate field. This number represents the pure capital you committed.

Amount Returned

Enter what you got back when you sold or cashed out. If you sold those stocks for $15,000 or your rental property for $65,000, put that here. This is the gross amount before considering any costs.

Investment Period

How many years have you held this investment? You can use decimals for partial years. If you held something for 18 months, enter 1.5. This helps calculate your annualized return, which shows your average yearly performance.

Total Fees

Include all transaction costs here. Brokerage fees when you bought and sold, real estate agent commissions, and transfer fees, add them all up. These reduce your actual profit and give you a more honest ROI number.

Tax Rate

Most investment profits get taxed as capital gains. The rate depends on how long you held the asset and your income level. Common rates are 0%, 15%, or 20% for federal taxes. Enter your combined rate if you also pay state taxes on investment gains.

Reading Your Results in the ROI Calculator

Total ROI

This percentage shows your complete return after all costs. A 50% ROI means you made half your investment back in profit. Negative numbers mean you lost money. This is your bottom-line performance metric.

Annualized ROI

This shows your average yearly return. It's useful for comparing investments you held for different time periods. A 30% total return over 5 years becomes about 5.4% per year. This helps you see if you beat standard benchmarks like the stock market average.

Net Profit

This is real money in your pocket after fees and taxes. If you invested $10,000 and this shows $3,500, you actually gained $3,500 in spendable cash. The color changes to red if you lost money and green if you made a profit.

Total Cost

This combines your initial investment plus all fees. It's important because your ROI is calculated based on everything you spent, not just the purchase price. Forgetting fees makes your returns look better than they really are.

Breakdown Chart

The doughnut chart splits your money into three parts. The gray section shows your original investment. The medium gray represents costs and taxes. The blue portion is your actual profit. This visual makes it easy to see how much of your returns got eaten by expenses.

Why This Matters

Knowing your true ROI helps you make better investment choices. You might think you're doing great until you account for all the hidden costs. Real estate, for example, has high transaction fees that can cut your returns significantly.

The annualized number lets you compare different types of investments fairly. You can see if your 3-year stock hold beat your 7-year bond investment when you look at yearly averages instead of total returns.

Tax planning becomes easier when you see how much capital gains eat into your profits. Sometimes holding an investment longer gets you better tax treatment, which this calculator helps you evaluate.

Tips for Accurate Results

Be honest about all your costs. Missing even small fees adds up over time and skews your calculations. Check your brokerage statements and closing documents for the exact numbers.

Use realistic tax rates. If you're not sure, search for current capital gains rates in your tax bracket. Some states add their own investment taxes on top of federal rates.

Compare your ROI to simple alternatives. Did you beat a basic index fund? Could you have made more in a high-yield savings account with zero risk? This context helps you judge if the effort was worth it.

Conclusion

This calculator turns investment results into concrete numbers. You'll know exactly how well your money performed after accounting for every cost. Use it before making new investments to set realistic expectations, and after selling to evaluate your choices. The difference between gross returns and net returns can be eye-opening.