ROI (Return on Investment) is a percentage that measures how much profit you made relative to what you invested. Formula: ROI = (Final Value − Initial Investment) / Initial Investment × 100%. A 50% ROI means you earned $50 for every $100 invested.

What is a good ROI for stocks?

The S&P 500 has historically returned about 10% annually (7% after inflation). Individual stock returns vary widely. A consistent 7–10% annualized return over long periods is considered good for a diversified portfolio.

How is total return different from price return?

Price return only counts the change in an asset's price. Total return includes price change plus any income received (dividends, interest, rent). For income-producing assets, total return can be significantly higher than price return.

How does the investment return calculator account for dividends?

Enter total dividends received in the dividends field. The calculator adds them to your gain before computing ROI and total return, giving you the complete picture of your investment performance.

Investment Return Calculator

Calculate ROI, total return, and annualized return for stocks, real estate, or any investment.

Initial Investment ($)

Final Value ($)

Dividends / Income Received ($)

Holding Period (years)

Investment Return Summary

Total ROI—

Total Gain / Loss—

Annualized Return (CAGR)—

Total Return (incl. income)—

Understanding Investment Returns

This investment return calculator computes your ROI (Return on Investment), total gain or loss, and annualized return for any investment. Whether you're evaluating stocks, real estate, bonds, or business investments, these metrics help you understand how well your money is working for you.

ROI Formula

ROI = (Final Value + Income − Initial Investment) / Initial Investment × 100%

Example: Buy $10,000 in stock, it grows to $15,000, and you received $500 in dividends. ROI = ($15,000 + $500 − $10,000) / $10,000 = 55%.

Annualized Return (CAGR)

Total ROI doesn't tell you how fast your money grew — a 55% return in 1 year vs. 10 years is very different. The annualized return (Compound Annual Growth Rate or CAGR) converts total return into a per-year rate: CAGR = (Final Value / Initial Value)^(1/years) − 1. This lets you compare investments held for different time periods.

What Is a Good ROI?

Context matters. A 10% ROI in one year is excellent. A 10% ROI over 10 years is less impressive (only ~1% annualized). The S&P 500 has historically delivered about 10% annualized nominal returns. A consistent 7–10% annualized return over long periods from a diversified portfolio is considered strong performance.

Investment Return Calculator — FAQs

ROI (Return on Investment) measures profit as a percentage of the original investment. Formula: ROI = (Gain / Cost) × 100%. It's the most widely used metric for evaluating investment performance, though it doesn't account for the time factor — use CAGR for time-adjusted comparisons.

CAGR (Compound Annual Growth Rate) converts total return into a per-year rate. A 100% total return over 10 years = 7.2% annualized. It enables fair comparisons between investments held for different periods. Formula: CAGR = (Ending Value / Beginning Value)^(1/years) − 1.

The S&P 500 has averaged about 10% annually before inflation (7% after). For individual investments, 10%+ annualized is generally strong. Safe investments like CDs or treasuries currently yield 4–5%. Compare your returns to relevant benchmarks (e.g., index fund performance for stock picks).

Dividends represent real income you received from the investment. Including them gives you "total return," which is a more accurate picture of overall performance. For dividend stocks, total return can be 2–3% higher per year than price return alone.

No. This calculator shows pre-tax returns. Capital gains taxes, dividend taxes, and state taxes will reduce your actual after-tax return. Long-term capital gains (assets held 1+ year) are taxed at 0%, 15%, or 20% depending on income. Consult a tax professional for your specific situation.