Return on Investment Calculator

How to Use the Calculator

1. Enter your Initial Investment (the amount of money you initially invested).
2. Enter your Final Value (the current value of your investment).
3. Enter the Investment Period in years.
4. Select the Calculation Type (Simple or Compound ROI).
5. Click the Calculate button to see the results.

Understanding ROI Formulas

Simple ROI

Simple ROI is calculated as:

Simple ROI = (Final Value - Initial Investment) / Initial Investment

This represents the percentage gain or loss on your investment over the investment period.

Compound ROI

Compound ROI takes into account the effect of compounding over time and is calculated as:

Compound ROI = [(Final Value / Initial Investment)^(1/Period) - 1] * 100

This formula shows the compound annual growth rate (CAGR) of your investment.

Important Notes

• The calculator assumes the investment grows or declines linearly for simple ROI and compounds annually for compound ROI.
• ROI does not take into account taxes, fees, or other transaction costs.
• For investment purposes, compound ROI is generally more useful as it accounts for the reinvestment of earnings.
• The Average Annual Return shows the compound annual growth rate of your investment.