ROI Calculator
Calculate your return on investment. Compare simple ROI and annualized returns.
Gain
$5,000
Simple ROI
+50.00%
Formulas used:
Simple ROI = ((Final - Initial) / Initial) × 100
Historical annual returns (for comparison)
| Investment | Avg Annual Return | Risk Level |
|---|---|---|
| High-yield savings | 0.5 - 5% | Very Low |
| Government bonds | 3 - 5% | Low |
| Corporate bonds | 4 - 7% | Low-Medium |
| S&P 500 (historical) | 7 - 10% | Medium |
| Real estate | 8 - 12% | Medium |
| Individual stocks | Varies widely | High |
Past performance does not guarantee future results. These are historical averages.
Frequently Asked Questions
What is ROI?
ROI (Return on Investment) measures the profitability of an investment as a percentage. It shows how much you gained or lost relative to your initial investment.
What is the difference between simple and annualized ROI?
Simple ROI shows total return regardless of time. Annualized ROI converts the return to a yearly rate, making it easier to compare investments held for different periods.
Why is annualized ROI important?
A 50% return over 10 years is very different from 50% in 1 year. Annualized ROI (about 4.1% vs 50% per year) lets you compare these fairly and against benchmarks like the S&P 500.
What is a good ROI?
It depends on the investment type and risk. Savings accounts offer 0.5-5%, bonds 3-6%, stock market historically averages 7-10% annually. Higher returns usually mean higher risk.
Does ROI account for inflation?
No, basic ROI is nominal (not adjusted for inflation). For real returns, subtract the inflation rate. Use our Inflation Calculator to see the difference.