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ROI Calculator

Enter initial amount, current value and holding period to get total return, annualized return in both conventions, and total profit.

Gaining 20% over one year and 20% over five are entirely different achievements, and comparing investments without annualising is self-deception. Enter what was invested, what it is worth now, how long it was held and any income received along the way, and the total return comes back with both annualised conventions — simple and compound — so that different holding periods can be placed on the same footing.

The two annualised figures: simple annualised return = total return ÷ years held, which is intuitive and fine for short periods; compound annualised return = (1 + total return)^(365/days) − 1, which is the geometric figure and the right one for long holds and cross-period comparison. Past a year the two diverge visibly, and fund performance is always quoted on the compound basis (CAGR).

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How to use

  1. Enter the amount invested, the current value and the number of days held.
  2. Add any income received during the period (dividends or interest).
  3. Read the total return and both annualised figures.
  4. Use the compound basis (CAGR) when comparing across different holding periods.

How it works

Total return

Total return = (current value + interim income - invested amount) / invested amount x 100%. Investing 100,000 with a current value of 118,000 and 2,000 in dividends gives 20,000 total return, a 20% rate.

Annualized return: simple vs. compound

Annualizing converts the holding period into one year. Simple basis: annualized = total return x 365 / holding days, simple and direct; compound basis: annualized = (1 + total return)^(365 / holding days) - 1, equivalent to assuming annual reinvestment. Earning 20% over 180 days is 40.56% simple annualized and 44.73% compounded.

Why annualizing is necessary

Returns over different holding periods aren't directly comparable: earning 5% in a month versus a year differs 12-fold in efficiency. Annualize first, then compare, to judge which product is better. The longer the holding period, the wider the simple-vs-compound gap, so long-term comparisons favor the compound basis.

Code example

JavaScript Simple and compound annualised returns 

function roi(invested, current, days, income = 0) {
  const totalReturn = (current - invested + income) / invested;
  const years = days / 365;
  return {
    totalReturn,
    simpleAnnual: totalReturn / years,                        // simple
    compoundAnnual: Math.pow(1 + totalReturn, 1 / years) - 1  // compound
  };
}

roi(10000, 11000, 730, 200);   // 12% total, 6%/yr simple, 5.83%/yr compound

Python The same formulas in Python 

def roi(invested, current, days, income=0):
    total = (current - invested + income) / invested
    years = days / 365
    return total, total / years, (1 + total) ** (1 / years) - 1

roi(10000, 11000, 730, 200)
# (0.12, 0.06, 0.0583)

# The compound figure is the CAGR; it is meaningless when a loss exceeds 100%

FAQ

Does the annualized return equal what I actually receive?

No. Annualizing just converts the current holding period's return into a yearly rate for efficiency comparison. What you actually get also depends on whether you can sustain the same rate, and on subscription/redemption fees and taxes; short-term high returns are often unsustainable.

Simple or compound annualized — which to look at?

Depends on the holding period. Within a few months the difference is small, so simple suffices; holding 3+ years with reinvested returns makes the compound basis closer to the real outcome. Use the same convention when comparing with banks and platforms to avoid misjudgment.

Should dividends and interest count as return?

Yes. Total return should include all cash dividends and interest received during the period, or the return is understated. Enter them under "interim income"; if dividends were reinvested and are already reflected in the current value, don't double-count.

Why does my "current value" result differ from the platform's annualized figure?

Usually three reasons: the platform annualizes on a compound basis or by calendar 365/366 days; it deducts management and subscription/redemption fees; and whether you included dividends. Deduct fees and recompute, or use the compound basis consistently, and the two usually converge.

What's the difference between total and annualized return?

Total return is the actual return over the whole holding period; the annualized return converts it into a "one year" rate for easy comparison. Earning 20% over 6 months is a 20% total return and about 44.7% annualized (compound) — both correct, just answering different questions.

How is the annualized return computed on a loss?

The formula is unchanged and gives a negative result. Losing from 100,000 to 90,000 over a year is -10% annualized; losing 10% in 3 months amplifies to about -34% (compound). Note that when the principal is wiped out (total return -100%), annualizing is meaningless, and the tool warns on out-of-range input.

How do I use it to compare two funds?

Keep three conditions consistent: the same time range, the same annualizing convention (compound recommended), and after deducting subscription/redemption and management fees. Enter the fee-adjusted net value as "current value," then compare annualized returns for a fair conclusion.

Is my holding amount collected?

No. The invested amount, current value and return figures never leave your browser; the server only serves the page code and receives no result. History is stored in local localStorage and clearable in one click; use an incognito window to leave no trace.