ToolPilot
ROI calculator
Enter what you invested, what it is worth now, and how long you held it. We compute simple ROI, annualized return (CAGR-style), and net profit—updated as you type.
Inputs
$10,000
$15,000
Used for annualized ROI: ((Final ÷ Initial)1 ÷ years − 1) × 100
Results
- ROI
- 50.00%
- ((Final − Initial) ÷ Initial) × 100
- Annualized ROI
- 8.45%
- Compound growth rate per year
- Net profit
- $5,000
- Final − Initial
Initial vs outcome
Visual split: principal versus gain (or remaining value versus loss).
How it works
- ROI (%) measures total return relative to what you put in: ((Final − Initial) ÷ Initial) × 100. It does not depend on time—doubling your money in one year or ten years gives the same simple ROI if the multiple is identical.
- Annualized ROI answers “what steady yearly rate would get me from Initial to Final in n years?” using ((Final ÷ Initial)1 ÷ n − 1) × 100. This matches the usual CAGR when cash flows only at the start and end. Final must be positive for a real-valued result.
- Net profit is simply Final − Initial—your dollar gain or loss before fees, taxes, or inflation.
FAQ
What is ROI and when should I use it?
Return on investment compares profit (or loss) to the original amount invested. Use simple ROI for a quick read on total performance; pair it with annualized ROI when you care how fast money grew over time.
How is annualized ROI different from simple ROI?
Simple ROI ignores the holding period. Annualized ROI compresses the same gain or loss into an equivalent per-year compound rate, so you can compare investments held for different lengths of time more fairly.
Does this include dividends, fees, or taxes?
Only if you bake them into Initial and Final. Enter all-in cost basis for Initial and liquidation value after costs for Final if you want an after-fee view. Taxes are not modeled separately.
Can ROI be negative?
Yes. If Final is below Initial, ROI and net profit are negative. Annualized ROI still summarizes the average compound decline per year over your holding period (when Final is positive).