ROI Calculator

ROI is evaluated from Initial Investment, Final Value and Holding Period. The calculation reports ROI, Annualized ROI and Total Gain / Loss.

Results

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About the ROI Calculator

ROI is treated here as a quantitative relation between Initial Investment, Final Value and Holding Period and ROI, Annualized ROI and Total Gain / Loss.

The calculator uses a multi formula configuration. Each reported value is read as a direct evaluation of the stored rules with the declared field formats and units.

Formula basis:
ROI = (Final Value - Initial Investment) / Initial Investment x 100
Annualized ROI = ((Final Value / Initial Investment)^(1 / Years) - 1) x 100
- This is equivalent to CAGR
- Requires number of years to calculate
Total Gain/Loss = Final Value - Initial Investment
Note: For investments with ongoing cash flows (dividends, rental income), consider using the Money-Weighted Return (MWR) or XIRR calculation instead.

Interpret the outputs in the order shown by the result fields. Optional inputs affect only the outputs that depend on those variables.

Formula & How It Works

The calculation applies the following relations exactly as recorded in the metadata:

ROI = (Final Value - Initial Investment) / Initial Investment x 100
Annualized ROI = ((Final Value / Initial Investment)^(1 / Years) - 1) x 100
- This is equivalent to CAGR
- Requires number of years to calculate
Total Gain/Loss = Final Value - Initial Investment
Note: For investments with ongoing cash flows (dividends, rental income), consider using the Money-Weighted Return (MWR) or XIRR calculation instead.

Each output field is produced by substituting the supplied inputs into the relevant relation and then applying the declared rounding or text format.

Worked Examples

Example 1: Stock Investment — 3-Year Hold

Inputs

initial_investment: 15000 final_value: 24750 years: 3
ROI: 65%. Annualized ROI: 18.17%. Total Gain / Loss: $9,750

With Initial Investment = 15,000, Final Value = 24,750 and Holding Period = 3 as the stated inputs, the result is ROI = 65%, Annualized ROI = 18.17% and Total Gain / Loss = $9,750. Each value corresponds to the declared output fields.

Example 2: Real Estate Flip

Inputs

initial_investment: 185000 final_value: 247000 years: 1
ROI: 33.51%. Annualized ROI: 33.51%. Total Gain / Loss: $62,000

With Initial Investment = 185,000, Final Value = 247,000 and Holding Period = 1 as the stated inputs, the result is ROI = 33.51%, Annualized ROI = 33.51% and Total Gain / Loss = $62,000. Each value corresponds to the declared output fields.

Example 3: Index Fund — Long-Term

Inputs

initial_investment: 10000 final_value: 32071 years: 12
ROI: 220.71%. Annualized ROI: 10.2%. Total Gain / Loss: $22,071

With Initial Investment = 10,000, Final Value = 32,071 and Holding Period = 12 as the stated inputs, the result is ROI = 220.71%, Annualized ROI = 10.2% and Total Gain / Loss = $22,071. Each value corresponds to the declared output fields.

Example 4: Investment Loss

Inputs

initial_investment: 8000 final_value: 5200 years: 2
ROI: -35%. Annualized ROI: -19.38%. Total Gain / Loss: -$2,800

With Initial Investment = 8,000, Final Value = 5,200 and Holding Period = 2 as the stated inputs, the result is ROI = -35%, Annualized ROI = -19.38% and Total Gain / Loss = -$2,800. Each value corresponds to the declared output fields.

Common Use Cases

  • Evaluate the ROI of a stock purchase and sale
  • Compare returns across different investment types (stocks, real estate, business)
  • Calculate annualized ROI to compare investments held for different periods