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BBI

📊 ROI Calculator

An ROI calculator measures the return on investment as a percentage of what you put in. Enter your initial investment and final value to see your total gain, ROI percentage, and — with a holding period — your annualized return, so you can compare investments of different sizes and durations fairly.

🇺🇸 Calculating for United States
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Investment details

Return on investment

50%

Gain of $5,000.00 on $10,000.00 invested

Annualized ROI (CAGR over 3 years)

14.47% per year

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Frequently asked questions

How do you calculate ROI?▾
ROI = (final value − initial investment) ÷ initial investment × 100. Investing $10,000 that grows to $15,000 gives ($15,000 − $10,000) ÷ $10,000 = 50% ROI. The formula works for stocks, real estate, business projects, or marketing spend.
What is a good ROI?▾
Context matters: the S&P 500 has averaged ~10% annually (7% after inflation), so beating that consistently is strong for passive investing. Business projects often target 15–30%+ to justify risk. Compare annualized ROI, not total ROI, across different time horizons.
What is the difference between ROI and annualized ROI?▾
Total ROI ignores time — 50% over 2 years is very different from 50% over 10 years. Annualized ROI (CAGR) converts the total to a per-year rate: (final ÷ initial)^(1/years) − 1. It is the fair way to compare investments of different durations.
Does ROI account for inflation, taxes, or fees?▾
Basic ROI does not. For real-world decisions, subtract fees and taxes from your final value, and consider real (inflation-adjusted) returns for long horizons. A 7% nominal return at 3% inflation is roughly a 4% real return.

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Disclaimer: This calculator is for informational and educational purposes only. Results are estimates and not financial advice. Consult a licensed financial advisor before making financial decisions.

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