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Global Financial Calculators

ROI Calculator

Calculate return on investment (ROI) and analyze investment performance. Compare different investment options and track your investment returns.

ROI Calculation

Load Example:

Calculate ROI from initial investment and final value

ROI Results

Enter investment details to calculate ROI

ROI Benchmarks & Investment Types

Typical ROI Ranges

Stocks (Long-term): 7-10%
S&P 500 historical average
Real Estate: 8-12%
Rental properties and appreciation
Bonds: 2-5%
Government and corporate bonds
Savings Account: 0.5-2%
High-yield savings accounts

ROI Considerations

  • • Risk vs. Return: Higher ROI often means higher risk
  • • Time Horizon: Longer investments may have higher returns
  • • Inflation: Consider real vs. nominal returns
  • • Fees: Subtract management and transaction fees
  • • Taxes: Account for tax implications
  • • Diversification: Don't put all eggs in one basket

How to Use This Calculator

Step-by-Step Guide

  1. 1. Select the appropriate calculation type
  2. 2. Enter your initial investment amount
  3. 3. Input final value, current value, or return rate
  4. 4. Add investment period if applicable
  5. 5. Include additional investments for compound ROI
  6. 6. Click "Calculate ROI" to see results

Understanding Results

  • • ROI Percentage: Return as percentage of investment
  • • Total Profit: Absolute dollar amount gained/lost
  • • Total Return: Final value of investment
  • • Annualized Return: Average annual return rate
  • • Performance: Whether investment was profitable

Frequently Asked Questions

What's a good ROI percentage?

A good ROI depends on the investment type and risk level. Generally, 7-10% annual returns are considered good for long-term stock investments, while 2-5% might be acceptable for lower-risk bonds. Consider your risk tolerance, time horizon, and investment goals when evaluating ROI.

What's the difference between ROI and annualized return?

ROI shows the total return over the entire investment period, while annualized return shows the average annual return rate. For example, a 50% ROI over 5 years equals a 8.45% annualized return. Annualized return helps compare investments with different time periods.

Should I include fees and taxes in ROI calculations?

Yes, for accurate ROI calculations, you should subtract all fees, commissions, and taxes from your returns. This gives you the net ROI, which is more meaningful for decision-making. Include management fees, transaction costs, and any applicable taxes in your calculations.

How do I compare different investment options?

Use annualized returns to compare investments with different time periods. Also consider risk levels, liquidity, and your investment goals. A higher ROI might not be better if it comes with significantly higher risk. Use this calculator to analyze each option and make informed decisions.