ROI Calculator

Frequently Asked Questions

What is ROI?

Return on Investment (ROI) measures the profitability of an investment:

  • Simple ROI shows total percentage return
  • Annualized ROI accounts for time period
  • Helps compare different investment opportunities
  • Considers both gains and losses

How is ROI calculated?

The calculator uses two main formulas:

  • Total ROI = ((Final Value - Initial Investment) / Initial Investment) × 100
  • Annualized ROI = (Final Value / Initial Investment)^(1/years) - 1) × 100
  • Investment Gain = Final Value - Initial Investment
  • Time period can be entered in years or using dates

What is Annualized ROI?

Annualized ROI helps compare investments over different time periods:

  • Converts total return to yearly rate
  • Accounts for compound growth
  • Better for comparing investments
  • More accurate for long-term analysis

When should I use date range?

Date range calculation is useful for:

  • Exact investment periods
  • Historical performance analysis
  • Partial year calculations
  • Precise period tracking