ROI calculator

The formulas

Total return is the simple ratio (final − initial) ÷ initial, expressed as a percentage. It answers one question — how much did the amount grow over the whole period — and deliberately ignores time.

Annualized return corrects for time: (final ÷ initial)^(12 ÷ months) − 1. It is the constant yearly rate that would compound to the same result. Two outcomes with identical total return are not equivalent if one took twice as long — annualizing makes them comparable.

Reading the result honestly

A single ROI figure hides everything that matters about risk: the path taken, the volatility endured, and what the same amount could have earned elsewhere. Comparing an outcome against a baseline alternative over the same period tells you more than the raw percentage does. For periods under a year, the annualized figure extrapolates — treat it as a projection, not a record.