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ROI Calculator

Return on investment and gain from cost and final value.

Free to use, no sign-up required. ROI Calculator is one of 198 tools built into Xenition, alongside a chat that can use them for you.

Measures how much an investment gained or lost relative to what it cost, and turns that into a yearly rate so investments held for different lengths of time can be compared.

How to use ROI Calculator

  1. Enter the Initial amount you put in.
  2. Enter the Final value, what it is worth now or what you sold it for.
  3. Enter how many Years you held it.
  4. Read the Net gain, the total ROI percentage and the Annualized return.

How it works

Net gain = final − initial. ROI = net gain ÷ initial × 100. The annualized figure is the compound yearly rate that turns the initial amount into the final one: ((final ÷ initial)^(1 ÷ years) − 1) × 100. It shows a dash when the initial amount or the years are zero.

Example

5,000 that grows to 7,500 over 2 years is a net gain of 2,500 and an ROI of 50%. Annualized, that is (1.5^0.5 − 1) × 100 = 22.47% a year, not 25%.

Questions about ROI Calculator

Why is my annualized return lower than ROI divided by the years?

Dividing assumes the gain arrives in equal slices. The annualized rate compounds, so each year’s growth builds on the last, and a smaller yearly rate is enough to reach the same total.

Should fees and dividends be included?

Yes, if you want the real return. Add fees and commissions to the initial amount and add any dividends or income received to the final value.

Use it from chat

You do not have to open ROI Calculator to use it. Ask Xenition in plain language and it runs the right tool, then carries the answer into whatever you are working on — a document, a spreadsheet, a deck.

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