1. Select simple ROI
Use it for one initial investment and one final value with no intermediate contributions.
Investing
ROI and investment return calculator
Measure the result of an investment with regular monthly cash flows. The calculator separates contributions from profit and estimates an annualized return.
Annualized return
1.92%
Total invested
$10,000.00
Profit or loss
$2,100.00
Return on invested money
21%
The annualized result depends on the assumed timing of contributions and may differ from a broker statement.
Calculation method
How annualized return is solved
The calculator finds the monthly return that turns the initial amount and all end-of-month contributions into the final portfolio value, then converts that rate to an effective annual return.
Detailed guide
ROI and annualized investment return
Simple ROI compares the final value with the amount invested. The cash-flow mode handles a starting balance plus equal monthly contributions and solves for the return that connects those cash flows to the final portfolio value.
Total ROI and annualized return answer different questions: total ROI measures the gain over the whole period, while annualized return expresses a comparable one-year growth rate.
Choose the correct return calculation
2. Use cash-flow mode when needed
Enter the starting investment, equal monthly contributions, final value and total term.
3. Compare annualized results
Use annualized return to compare investments held for different lengths of time.
ROI formula
ROI = (Final value − Amount invested) ÷ Amount invested × 100%
Simple annualized return is (final value ÷ invested amount)^(1 ÷ years) − 1.
With monthly contributions, the calculator numerically solves the monthly return that produces the entered final value, then converts it to an effective annual rate.
ROI example
If $10,000 becomes $12,100 over two years, profit is $2,100, total ROI is 21%, and annualized ROI is 10%. A 21% return is not divided by two because returns compound.
Interpreting investment performance
Cash-flow timing
Changing contribution dates changes the return. Equal end-of-month contributions are an estimate when actual deposits vary.
Realized and unrealized value
A current portfolio value can be used before sale, but taxes and transaction costs may reduce the amount ultimately received.
ROI versus future value
Use this page to measure a completed or current investment. Use compound interest to model a future constant-rate scenario.
Decision guide
Use ROI with the right time and cost assumptions
Google competitors cover absolute profit, ROI, annualized return, and the limits of a simple percentage. ROI is useful for a single investment with one beginning and one ending value, but it can mislead when alternatives have different holding periods or cash flows.
Profit and ROI are complementary
Profit is the ending value minus invested cost. ROI divides that profit by cost, making different investment sizes easier to compare. Neither figure includes time by itself: the same ROI earned in one year and five years represents very different performance.
Additional cash flows require care
Deposits, withdrawals, dividends, and partial sales have dates that affect performance. Do not label new contributions as profit. For a portfolio with many dated flows, a money-weighted or time-weighted method may be more appropriate than a one-period ROI calculation.
Measure the net outcome
Add trading costs and other fees to the investment cost, and account for taxes according to your situation. Compare a conservative ending value with the base case and consider inflation when the holding period is long. A precise percentage from uncertain inputs is still an estimate.
Comparable ROI inputs
- Use the same holding period.
- Include all acquisition costs.
- Treat contributions separately.
- Test a lower ending value.
How to compare scenarios
Save a baseline, then change only one input at a time: amount, rate, term, or recurring payment. Record the supporting outputs as well as the headline result—contributions, interest, total cost, remaining balance, or target date. This isolates the assumption that actually changes the decision instead of hiding it inside several simultaneous edits.
Do not tune every assumption until the calculator produces a preferred answer. Start with a cautious case, follow with a central case, and treat the favorable case as an upside scenario. A calculator result is not a lender quote, market forecast, or tax determination; actual dates, rounding, fees, contract rules, and required payments must be checked in primary documents.
Keep enough precision in the inputs and round only the output used for a decision. If the estimate supports a transaction, loan, tax calculation, or long-term plan, repeat it with figures from the contract or official statement. Any difference helps identify the assumption that still needs verification.
ROI questions
What is a good ROI?
It depends on risk, term, inflation, taxes and the benchmark. ROI should not be evaluated without those factors.
Can ROI be negative?
Yes. A final value below the amount invested produces a negative profit and ROI.
Why annualize a return?
Annualization makes holding periods easier to compare, but it does not describe volatility along the way.
Are dividends included?
Include reinvested or received dividends in the final value if you want them reflected in ROI.
Updated: July 28, 2026