About ROI Calculator

Calculates return on investment from an initial investment amount, final value, optional additional costs, and a time period. Produces both a simple ROI percentage and an annualized ROI using the compound annual growth rate (CAGR) formula. Time periods can be specified in days, months, or years. Results are classified into performance tiers (Excellent/Good/Average/Poor/Loss) and exportable as JSON.

• ROI formula: ((Final Value − Total Investment) ÷ Total Investment) × 100
• Annualized ROI uses CAGR: ((Final ÷ Investment)^(1/years) − 1) × 100
• Time unit conversion: days ÷ 365, months ÷ 12 for annualization
• Additional costs field lets you factor in transaction fees, maintenance, or improvements
• Four preset scenarios: stock investment, real estate, business project, short-term trade

Frequently Asked Questions

What is the difference between ROI and annualized ROI?

ROI measures total return as a percentage of what you invested—it ignores time. Annualized ROI normalizes that return to a yearly rate using compound growth, making it possible to compare a 90-day trade against a 3-year real estate investment on equal footing.

Why does the annualized ROI look so much higher than the simple ROI for short time periods?

A 12% return in 90 days annualizes to roughly 60% because the CAGR formula extrapolates what that rate would compound to over a full year. It is not a guarantee—it is a normalization tool for comparison.