ROI Calculator
Frequently Asked Questions
What is ROI?
Return on Investment (ROI) measures the profitability of an investment:
- Simple ROI shows total percentage return
- Annualized ROI accounts for time period
- Helps compare different investment opportunities
- Considers both gains and losses
How is ROI calculated?
The calculator uses two main formulas:
- Total ROI = ((Final Value - Initial Investment) / Initial Investment) x 100
- Annualized ROI = (Final Value / Initial Investment)^(1/years) - 1) x 100
- Investment Gain = Final Value - Initial Investment
- Time period can be entered in years or using dates
What is Annualized ROI?
Annualized ROI helps compare investments over different time periods:
- Converts total return to yearly rate
- Accounts for compound growth
- Better for comparing investments
- More accurate for long-term analysis
When should I use date range?
Date range calculation is useful for:
- Exact investment periods
- Historical performance analysis
- Partial year calculations
- Precise period tracking