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Finance & Business · pattern A, Numeric fields

Return on investment, and the annualised version.

Enter cost and final value for simple ROI, plus the annualised figure that makes returns over different periods comparable.

Inputs

The formula used

ROI = (gain − cost) ÷ cost × 100

Simple ROI ignores time entirely, which is why a 50% return over one year and over ten look identical. The annualised figure fixes that.

ROI

35.000 %

Net gain
1,750.00
Annualised return (CAGR)
10.521 %
Multiple of the original
1.3500 ×
Return per year, naive
11.667 %
Years to double at the annualised rate
6.929
Break-even value
5,000.00

ROI without a time period is close to meaningless.

A 50% return is excellent over one year and poor over ten, and simple ROI cannot tell the two apart. The compound annual growth rate divides the total return over the holding period properly rather than by simple division, which overstates long-horizon performance. Any ROI quoted without a period should be treated as incomplete.

Questions about roi

What is the difference between ROI and CAGR?
ROI is the total percentage gain over the whole period; CAGR is the equivalent constant annual rate. CAGR is what allows comparison across periods.
Should fees be included in cost?
Yes, all of them — transaction costs, platform fees and taxes. Excluding them is the commonest way ROI is overstated.
Can ROI exceed 100%?
Yes, whenever the value more than doubles. It can also be negative down to −100%, which means the investment is worthless.

A calculator handles the arithmetic. It cannot teach you the method.

If the number is not the part you are stuck on, that is what the service is for — a specialist who explains the working, not just the answer.

These are coursework tools. Nothing here is financial advice, no figure accounts for tax rules in your jurisdiction, and no result should be relied on for a real borrowing or investment decision.