An investment's total return is the profit as a share of what you paid, and the annualized return is the yearly compound rate that would have produced it over the holding period. Enter the amount invested, any extra costs and what you got back, plus the years held, and the calculator returns both, so a two-year and a ten-year investment can be compared honestly.
Include every cost (fees, taxes, maintenance) in the amount invested and every receipt (dividends, rent, sale proceeds) in the amount returned; the return on the headline price alone is usually flattering.
ROI Calculator
Return on investment is the simplest way to compare what you got back with what you put in. The ROI calculator takes the amount invested, any additional costs, and the amount returned. Investing $10,000 and getting $13,500 back is a $3,500 profit and a 35% return.
A plain ROI figure ignores time, which makes a 35% return over two years look identical to 35% over ten. Enter a holding period and the calculator also shows the annualized return, the compound annual growth rate that would produce the same result: 35% over two years is about 16.2% a year. Use the annualized figure whenever you compare investments held for different lengths of time.
Related Calculators
Frequently Asked Questions
What is the difference between total and annualized return?
Total return is the overall gain as a percentage of cost. Annualized return spreads it into a yearly compound rate so investments of different lengths can be compared.
Should I include dividends and fees?
Yes. Add dividends, interest or rent to the amount returned and fees, taxes and upkeep to the amount invested for a true return.
Is a 12% annualized return good?
It is above long-run stock market averages of roughly 7–10% a year, so it is good if the risk taken was similar; higher risk should earn a higher return.
