Business
ROI Calculator
Calculate total and annualized return on investment over any holding period.
Total ROI
50%
ROI = (final value − initial investment) ÷ initial investment × 100
- Total return
- $5,000.00
- Annualized ROI
- 8.45%
CalculateWise provides estimates for informational purposes only and is not financial, tax, legal, lending or investment advice.
How to use the ROI Calculator
- Enter the initial investment.
- Enter the final value.
- Enter the number of years held.
How it works
Total ROI measures overall percentage gain or loss. Annualized ROI smooths that return to a yearly rate.
Formula
Annualized ROI = (final value ÷ initial investment)^(1/years) − 1
Example
$10,000 growing to $15,000 over 5 years is a 50% total return and about 8.45% annualized.
Common uses
- Investment comparison
- Business case review
- Portfolio tracking