Calculate total return, annualized ROI, net gain/loss, and how long until your investment doubles.
ROI (Return on Investment) measures how much profit or loss an investment generates relative to its cost. It is calculated as (Net Gain / Initial Investment) × 100. For example, if you invest $10,000 and it grows to $13,000, your net gain is $3,000 and your ROI is 30%. ROI is a simple, universal metric used to compare the efficiency of different investments.
Total ROI is the overall percentage gain or loss over the entire investment period, regardless of how long it took. Annualized ROI (also called CAGR — Compound Annual Growth Rate) normalizes the return to a per-year rate, accounting for compounding. For example, a 50% total ROI over 5 years equals approximately 8.45% annualized ROI. Annualized ROI is more useful when comparing investments held for different lengths of time.
A "good" ROI depends on the type of investment, risk level, and time horizon. Historically, the US stock market has returned around 10% annually (7% after inflation). Real estate often returns 8–12% annually. High-risk ventures may target 20%+, while safe assets like bonds or savings accounts return 2–5%. Always weigh ROI against risk — a higher ROI often comes with higher risk.