ROI Calculator 📈
Use this return on investment (ROI) calculator to understand the potential returns of your investments over time.
Your ROI Summary
Initial Investment
$10,000
Final Value
$20,000
Total Profit
$10,000
Annualized ROI
14.87%
Investment Value Over Time
Investment vs. Profit
Your ROI Results by Year
| Year | Investment Value ($) | Annual ROI ($) | Cumulative ROI ($) | Annualized ROI (%) |
|---|---|---|---|---|
| 1 | $11,486.98 | $1,486.98 | $1,486.98 | 14.87% |
| 2 | $13,195.08 | $1,708.10 | $3,195.08 | 14.87% |
| 3 | $15,157.17 | $1,962.09 | $5,157.17 | 14.87% |
| 4 | $17,411.01 | $2,253.85 | $7,411.01 | 14.87% |
| 5 | $20,000.00 | $2,588.99 | $10,000.00 | 14.87% |
What is ROI?
ROI (Return on Investment) represents the percentage gain or loss on an investment relative to the initial amount invested. It is a simple way to measure the efficiency or profitability of an investment over time.
How is ROI Calculated?
The formula to calculate ROI is:
\( ROI = \left(\frac{Final Value - Initial Investment}{Initial Investment}\right) \times 100 \)
How to Use the ROI Calculator
This ROI calculator helps you estimate the potential returns of your investments over time. Below are detailed instructions on how to use the calculator, along with definitions for each metric and answers to frequently asked questions.
Follow these steps to use the calculator:
- Initial Investment: Enter the initial amount you invested.
- Final Value: Enter the final value of your investment.
- Investment Period: Choose to enter the investment period in years or specify the start and end dates.
Frequently Asked Questions (FAQ)
1. What is the difference between ROI and Annualized ROI?
ROI (Return on Investment) measures the total percentage gain or loss on an investment over the entire investment period. Annualized ROI, on the other hand, adjusts ROI to an annual basis, providing a standardized way to compare the performance of investments with different time horizons.
2. How do you calculate Annualized ROI?
Annualized ROI is calculated using the formula:
\( \text{Annualized ROI} = \left( (1 + \frac{ROI}{100})^{\frac{1}{n}} - 1 \right) \times 100 \)
where \( ROI \) is the total return on investment, and \( n \) is the number of years.
3. How do you calculate ROI for different investment periods?
To calculate ROI for different investment periods, specify the initial investment, final value, and the length of the investment period either in years or by selecting the start and end dates. The calculator will then compute both the ROI and the Annualized ROI based on the input.
This ROI calculator provides estimates based on the inputs you provide and assumptions made in the calculation process. Please consider the following:
- These estimates do not guarantee future results and are for illustrative purposes only.
- The calculations assume constant rates of return, which may not reflect actual market conditions.
- Investment returns can vary and may be affected by factors such as market fluctuations, economic conditions, and changes in tax laws.
- The calculator does not account for transaction fees, account fees, or other costs that may impact your returns.
- Past performance of an investment is not indicative of future results.
- We strongly recommend consulting with a qualified financial advisor to assess your individual investment goals and risk tolerance.
By using this calculator, you acknowledge that the calculations are for informational purposes only and should not be construed as financial advice. Please consult with a financial advisor for personalized advice. See our full terms of service for more information.