Evaluate the efficiency of your investments. Calculate Return on Investment and annualized profits with precision.
Compounded Annual Growth Rate
Return on Investment (ROI) is a popular profitability metric used to evaluate how well an investment has performed. It is expressed as a percentage and compares the gain or loss from an investment relative to its cost.
A positive ROI means the investment has gained value, while a negative ROI implies a loss.
Simple ROI doesn't account for the time period. A 20% return over 1 year is fantastic, but over 20 years, it's poor. Annualized ROI solves this by calculating the yearly growth rate: