Calculate return on investment, annualised ROI, and payback period for any investment.
Enter your initial investment amount, the final value of the investment, any additional costs incurred (fees, maintenance, taxes), and the holding period. The calculator shows your total ROI percentage, net profit, and — critically — your annualised ROI, which lets you compare returns across investments held for different lengths of time.
There's no universal answer since it depends on the asset class and risk level. As a general reference point, long-term stock market index funds have historically returned around 7–10% annualised. Real estate often returns 8–12% annualised including appreciation and rental income. Higher numbers usually carry higher risk, so ROI should always be considered alongside the risk taken to achieve it.
A 50% total ROI sounds identical whether it happened over 1 year or 10 years, but the annualised figure reveals the real story: 50% in one year is an outstanding 50% annual rate, while 50% over 10 years is a much more modest ~4.1% annual rate. Always compare annualised ROI when judging investments held for different durations.
ROI = (Net Profit / Total Invested) × 100, where Net Profit equals the final value minus the initial investment minus any additional costs. This calculator also computes the annualised version using the compound growth rate formula so returns can be compared fairly across different time periods.
Payback period is how long it takes for the investment to return your original capital, assuming linear growth. It's a simple risk-screening tool — shorter payback periods generally mean lower exposure to long-term uncertainty, though it doesn't account for returns earned after the payback point.
Yes, for an accurate picture. Transaction fees, ongoing maintenance, management fees, and taxes all reduce your true return. Use the "Additional Costs" field to factor these in so your ROI reflects the actual money you kept, not just the gross gain.