What ROI tells you
Return on investment measures how much you gained relative to what you put in, as a percentage. An ROI of 50% means you earned half your investment back on top of getting it returned. Plain ROI ignores time, so a 50% return over one year is very different from 50% over ten — that's why the annualised figure matters when comparing investments of different lengths.
Frequently asked questions
What's the difference between ROI and annualised ROI?
Plain ROI is the total percentage gain over the whole period. Annualised ROI spreads that gain across the years so you can compare investments held for different lengths of time.
Can ROI be negative?
Yes. If you get back less than you invested, ROI is negative — a loss. The calculator shows it in red.
Does "amount returned" include my original money?
Yes — enter the total value you ended up with, including the original investment. The calculator subtracts the invested amount for you.