BedrockCalc — bedrockcalc.com
Scenario link:
ROI Calculator
A big total return can hide a mediocre yearly one. This ROI calculator takes what you invested and what came back and returns net profit, total ROI percentage and the annualized figure — so a short hold and a long one compare fairly.
See how this works on a $10,000-to-$15,000 investment — 3 real examples
Return on investment (ROI)
0%
Net profit
$0
Annualized ROI
—
CAGR
—
Return multiple
1.00×
Where the final value comes from
- Amount invested
- $0
- Profit
- $0
- Final value
- $0
How your ROI and annualized ROI are calculated
Total ROI is the profit expressed as a share of everything you put in:
cost = invested + fees + holding costs
net profit = final value − cost
ROI % = net profit / cost × 100
annualized ROI % = ((final value / cost)1/years − 1) × 100
Any fees and holding costs you enter are folded into cost, so the ROI percentage reflects your true, all-in outlay rather than the sticker price alone. Total ROI answers “how much did I make per dollar?” but ignores how long it took, which is why we also annualize.
The annualized ROI is the constant yearly rate that would grow your cost into the final value over the holding period. For a single amount in and a single amount out, that is exactly the compound annual growth rate (CAGR) — the two figures above are identical by construction, and we show both so the annualized number is transparent rather than a black box. When you use the date range, the holding period is the gap between the two dates measured on a 365.2425-day year. Set the holding period to zero and we report total ROI only, since a return with no time attached can’t be annualized.
The clock behind a 50% return
$10,000 becomes $15,000 in every tab. Two holding periods and a set of fees show why the total ROI alone says too little.
The default: $5,000 profit in five years
annualized ROI8.4%
- $10,000 in, $15,000 out: a $5,000 net profit and a 50.0% total return.
- Spread over five years, that works out to 8.4% compounded annually.
- The same math is the CAGR — the steady yearly rate that turns cost into final value.
A 50% return is only half a fact; the other half is how long the money was away.
Load this example (opens in a new tab)The same trade, finished in two years
annualized ROI22.5%
- Nothing changes on the receipt — still $5,000 of profit and a 50.0% total ROI.
- Compressed into two years, the yearly rate nearly triples to 22.5%.
- Ranked by total ROI the two trades tie; ranked by annualized ROI they are not close.
Speed is invisible in total ROI and everything in the annualized figure.
Load this example (opens in a new tab)Five years again, counting every cost
annualized ROI6.4%
- Adding $500 in fees and $500 in holding costs lifts the true outlay to $11,000.
- Profit drops to $4,000 and the total return to 36.4% — the sticker said 50.0%.
- Annualized, the five-year rate slides from 8.4% to 6.4%.
Costs do not change what came back; they change what it cost — the denominator.
Load this example (opens in a new tab)Illustrations only, not financial advice. Your own rate, taxes and insurance will differ — check with a qualified financial advisor before acting on any of this.
Reading your return on investment, in plain English
- ROI is per-dollar, not per-year. A 50% ROI means $0.50 of profit for every dollar invested — it says nothing about whether that took one year or ten.
- Annualized ROI is the fair comparison. Two deals with the same total ROI aren’t equal if one took twice as long; the annualized figure puts them on the same yearly footing.
- Count every cost. Fees, commissions and holding costs quietly shrink real returns — fold them in and your ROI percentage stops being optimistic.
- Annualized ROI equals CAGR here. For one amount in and one out they’re the same number; reach for IRR only when cash flows arrive on different dates.
- Context beats a big number. Compare your annualized ROI against a benchmark — the long-run stock market has averaged roughly 10% a year — before calling a return good.
Related calculators
Frequently asked questions
How do I calculate ROI?
Subtract what you put in from what you got back, divide by what you put in, then multiply by 100. So a $10,000 investment that returns $15,000 gives an ROI of ($15,000 − $10,000) ÷ $10,000 × 100 = 50%. This ROI calculator does that instantly and also breaks the profit out for you.
What is ROI (return on investment)?
Return on investment is your profit expressed as a percentage of the amount invested: (gain − cost) ÷ cost. It puts gains of any size on the same scale, so a $500 profit on $1,000 (50%) and a $5,000 profit on $10,000 (50%) read as equally good deals per dollar risked.
What is the difference between total ROI and annualized ROI?
Total ROI is the whole percentage return over the entire holding period, no matter how long that took. Annualized ROI converts it into an equivalent yearly rate — (final ÷ cost)^(1 ÷ years) − 1 — so a 50% return earned in 2 years and a 50% return earned in 10 years can be compared fairly. This tool shows both so short and long holds line up.
Is a higher ROI percentage always better?
Not without the time frame. A 100% ROI earned over 20 years is only about 3.5% a year, while a 25% ROI earned in one year is 25% a year — far better. That is exactly why the annualized ROI figure matters, and why we never show a raw ROI percentage without the holding period beside it.
What costs should I include in the amount invested?
Include everything it took to own the investment: the purchase price plus any fees, commissions, and holding or maintenance costs. The optional fee and cost fields above fold those into the total so your ROI reflects the true, all-in figure rather than an optimistic one.
What is the difference between ROI and IRR?
ROI is a single total-return ratio for one amount in and one amount out. IRR (internal rate of return) annualizes a stream of cash flows that arrive at different times. For a simple buy-and-sell, annualized ROI and IRR agree; once there are interim cash flows, use our IRR calculator instead.
Disclaimer: these calculators are educational tools, not financial advice. They model your inputs with published formulas, but they cannot know your full situation — for decisions with real stakes, talk to a qualified professional. Formulas and defaults last reviewed .