Return on investment calculator
FinanceCalculate absolute return, total percent and annualized return on an investment.
Your results
Calculate absolute, total and annualized return on investment.
How ROI is calculated
Absolute return is the simple difference between final and initial value. Annualized return compounds that change over the years of the investment.
Why annualized matters
Two investments with the same total return can have very different annualized rates depending on how long the money was invested. The annualized number makes them comparable.
Frequently asked questions
Answers to the most common questions about this tool.
How is this result calculated?
It applies the relevant financial formula to the amounts, terms, and rates you enter.
Does the result include every cost?
Not necessarily; fees, taxes, insurance, and third-party charges may be excluded.
Can I use this as a final financial quote?
No. Use it to compare scenarios and confirm final terms with the relevant provider.
What information do I need to enter?
Enter amounts, rates, and time periods consistently.
What assumptions does the calculation make?
It assumes the values you enter remain constant for the selected scenario.
Sources and methodology
Methodology: ROI and annualized return
Calculates absolute return, total ROI, and annualized return using the year-based root.
It does not include risk, taxes, inflation, or interim cash flows.
References
No external reference is required: the mathematical calculation is described above.
Last reviewed
July 15, 2026