ROI Calculator

Geekflare ROI Calculator Features

• Simple Interface: Easily assess your investment performance with our user-friendly ROI calculator.
• Accurate Results: Get precise ROI calculations based on your actual investment data.
• Time Period Consideration: Specify the duration of your investment (in years and months) for a more accurate assessment.
• Clear and Concise Output: Receive a breakdown of your investment results, including:
  • ROI Percentage: See the percentage return on your investment to date.
  • Total Gain (Amount): Understand the actual profit or loss you've made.
  • Annualized ROI: Know your average yearly return on investment, providing a more accurate picture of long-term performance.
  • Investment Time Period: Review the length of time your investment has been held.
• Free: Use Geekflare ROI calculator anytime, anywhere, at no cost.

How to Calculate ROI and Annualized ROI?

Return on investment (ROI) is a fundamental metric for evaluating the profitability of your investments. It expresses the gain or loss from an investment relative to its cost as a percentage. The higher the ROI, the better your investment has performed.

The basic formula for calculating ROI is:

ROI (%) = (Net Profit / Initial Investment) * 100

Where:

• Net Profit is the final value of your investment minus the initial investment cost.
• Initial Investment is the amount of money you initially put into the investment.

Example:

If you invested $10,000 and your investment grew to $12,000, your net profit is $2,000. Your ROI would be:

ROI = ($2,000 / $10,000) * 100 = 20%

How to Calculate Annualized ROI

Annualized ROI takes your total ROI and calculates the average yearly return over the entire holding period. This is particularly useful for comparing investments held for different durations.

The formula for calculating annualized ROI is:

Annualized ROI (%) = [(1 + ROI)^ (1 / Number of Years)] - 1 * 100

Where:

• ROI is your total return on investment as a decimal (e.g., 0.20 for 20%).
• Number of Years is the duration of your investment in years.

Example:

If your total ROI is 20% over 5 years, your annualized ROI would be:

Annualized ROI = [(1 + 0.20)^(1/5)] - 1 * 100 = 3.71%

Is there some other tool to calculate ROI?

You can try other tools such as Omni Calculator and Bankrate.