ROI: return on investment and annualized return
ROI tells you how hard your money worked. Invested vs returned gives gain and ROI %, annualized spreads it per year for fair comparison. Use it to compare a 35% over 3 years with 20% in 1 year without being misled.
TL;DR
- Gain is returned minus invested
- Formulas: ROI % = (Returned - Invested)/Invested ×100 | Annualized % = (Returned/Invested)
- 10k →13.5k in 3y
How it works
Gain is returned minus invested. ROI % is gain divided by invested times 100. Annualized ROI is the steady yearly rate that compounds to the same final amount: (Returned/Invested)^(1/years)-1.
The math
Gain = Returned - Invested. ROI = Gain/Invested*100. Annualized = (Returned/Invested)^(1/years)-1. Example 13500/10000=1.35, ^1/3≈1.105 →10.5% per year.
Annualized uses geometric mean to spread growth evenly. Without years, ROI is total.
Examples
10k →13.5k in 3y
- Gain 3,500
- ROI 35%
- Annualized ≈10.5%
Flip 135k →180k
- Gain 45k
- ROI 33.3%
When to use it
✦ Investments
Compare stocks, real estate, projects.
✦ Business cases
Pitch ROI with time-adjusted figure.
⚠ Common mistakes
- Mixing gross return with net gain
- Comparing total ROI without annualizing
FAQ (7)
What is a good ROI?
It depends on risk and time. 7-10% annualized is typical for diversified markets; real estate often targets 8-12% after costs. Compare annualized, not raw.
ROI vs annualized ROI?
ROI is total. Annualized spreads it per year via compound formula, so you can compare a 2-year and a 5-year deal fairly.
Does ROI include fees?
Only if you include them in invested cost. Add purchase, taxes, commissions to invested to get true net ROI.
Are the calculations performed on CalcTracker safe for my privacy?
Yes, all calculations on CalcTracker run exclusively on your local device within the web browser. None of the entered data is sent to external servers or stored remotely. The application is entirely offline-first.
Can I use CalcTracker in offline mode on my smartphone?
Absolutely. CalcTracker is designed as a lightweight, progressive-style web application. Once the page is loaded for the first time, all calculators remain ready to use and fully functional even in the complete absence of an internet connection.
Are the results provided by the calculators accurate for official use?
Our calculators use standard mathematical formulas and verified equations. However, for critical financial, banking, or tax decisions (such as exact car tax or net salary calculations), we always advise consulting with a certified professional or referencing official government portals.
How can I share a specific calculation with someone else?
Simply click the "Share Link" button located in the results panel after performing a calculation. The values entered into the form will be encoded directly into the URL query parameters, allowing anyone who opens the link to see the exact same results instantly.
Sources & References
⚠ Financial Disclaimer
This tool provides estimates for informational purposes only and does not constitute financial, tax, or legal advice. Results may vary based on local regulations, rates, and individual circumstances. Always consult a qualified professional before making financial decisions.