Finance
ROI Calculator
Total ROI — (gain / cost) × 100. Annualized ROI = the equivalent yearly return. Critical for comparing investments of different durations.
FAQ
Why annualize? +
A 30% return over 5 years sounds better than 12% over 1 year — but the 12% one is actually 12%/yr (better than 30/5 = 6%/yr). Annualized ROI lets you compare across durations.
What's the formula? +
Annualized = (1 + total_return)^(1/years) - 1. Example: 50% total return over 3 years → (1.5)^(1/3) - 1 = 14.5%/yr.