ROI Calculator
Net profit, ROI %, and annualized return on any investment.
Every calculation runs locally in your browser. Nothing you enter here is sent to a server or stored anywhere.
Net profit
+$4,500
ROI
+45%
Annualized return (CAGR)
+13.2%
Initial vs. final value
For informational and educational purposes only — not financial, investment, or tax advice, and not a substitute for consulting a qualified professional about your specific situation. TrueMeasureKit is not liable for decisions made based on these results. See our Terms of Service.
ROI vs. annualized return
ROI tells you the total percentage gain or loss over the entire holding period — useful for comparing two outcomes, but it treats a 20% return over one year the same as 20% over ten. Annualized return (CAGR) normalizes for time, so you can fairly compare investments held for different lengths. A high ROI over a long period can be a mediocre annualized return, and vice versa.
Frequently asked questions
What's the difference between ROI and annualized ROI?
Plain ROI is total return over the whole holding period, regardless of how long that took. Annualized ROI converts it to a per-year rate, which is the only way to fairly compare investments held for different lengths of time.
Does ROI account for reinvested gains or compounding?
The basic ROI figure (net profit ÷ cost) does not — it treats the gain as a single lump sum. The annualized figure implicitly assumes compound growth to convert total return into a yearly rate.