Investment Return Calculator: ROI & Annualized Growth
How well is your investment actually doing? This free calculator takes what you put in, what you added along the way, and what it's worth today — and gives you the three numbers that matter: total profit, return on investment, and the annualized growth rate you can fairly compare against anything else.
Investment Return Calculator
How to Use This Calculator
Enter what you invested at the start, everything you added afterward (including reinvested dividends if they're not already reflected in the value), and the account's current value. Enter how long you've held the investment — fractions are fine, so 3 years and 6 months is 3.5.
Click Calculate. The tool shows your total profit in dollars, your return on investment as a percentage, and the annualized growth rate (CAGR). Use that last number to compare this investment against savings accounts, index funds or anything else.
The Formula
Total profit is simply current value − initial investment − additions. ROI is that profit divided by everything you put in: ROI = profit ÷ (initial + additions) × 100. The annualized rate is CAGR = (current value ÷ total invested)^(1 ÷ years) − 1.
Worked example: $10,000 invested, $5,000 added later, now worth $19,000 after 4 years. Profit = 19,000 − 15,000 = $4,000. ROI = 4,000 ÷ 15,000 = 26.7%. Annualized: (19,000 ÷ 15,000)^(1/4) − 1 = 6.1% per year — respectable, though below the long-run stock market average.
Tips
Compare annualized returns over the same periods. A fund that gained 30% in 3 years (9.1% annualized) underperformed one that gained 45% in 4 years (9.7% annualized).
Benchmark honestly. The real question isn't "did I make money?" but "did I make more than a low-cost index fund would have?" — because that's the alternative you could have owned with zero effort.
Account for fees in your value. If you've paid $300 in trading fees or account charges over the years, subtract them from the current value — they're part of your true return.
Frequently Asked Questions
How do I calculate my return on investment (ROI)?
ROI is your profit divided by everything you put in: subtract your initial investment and all additional contributions from the current value, then divide that profit by the total you invested. If you invested $10,000 total and the account is now worth $12,500, your profit is $2,500 and your ROI is 25%.
What is an annualized return and why does it matter?
The annualized return (CAGR) flattens your total gain into a single yearly rate, which lets you compare investments held for different lengths of time. Doubling your money sounds great — but over 20 years that's only about 3.5% a year, while over 5 years it's 14.9%. Comparing annualized rates, not raw gains, is the fair way to judge performance.
What is a good annual return on investments?
It depends on the investment. The U.S. stock market has historically returned about 7% to 10% a year before inflation over long periods; bonds about 2% to 5%; savings accounts often under 5%. But averages hide huge year-to-year swings — a stock portfolio can drop 30% in a bad year. Judge returns over 5 to 10 years, never over months.
Should I count dividends in my return?
Yes — dividends are part of your return. If you reinvest them, they're already reflected in the current account value you enter. If you took them as cash, add them to the current value before calculating, since they're profit the investment produced.
Why is my brokerage's return different from this calculator?
Brokerages typically report a time-weighted or money-weighted return, which accounts for the exact dates you added money. This calculator simplifies by treating all contributions as if invested for the full period, which slightly understates your annualized return when you added money over time. For a precise personal number, use your brokerage's own performance report.