Calculate the return on investment (ROI) and annualized ROI for a purchase or project, from the amount invested, amount returned, and investment period.
ROI strips an investment down to one question: for every dollar in, how many dollars came out? That simplicity is exactly why it's so widely used — it works for a stock portfolio, a rental property, a marketing campaign, or a sheep farm, without needing any special financial modeling. The tradeoff is that plain ROI says nothing about how long the money was tied up, which is where annualized ROI comes in.
A 100% ROI sounds identical whether it took six months or twenty years — but those are wildly different outcomes. Annualized ROI converts the total return into an equivalent constant yearly rate, the same way IRR does, making it possible to fairly compare investments held for different lengths of time.
Yes — if the amount returned is less than what was invested, both ROI and annualized ROI will be negative, reflecting a net loss.
Not unless you build them into the "amount invested" or "amount returned" figures yourself — this calculator works purely from whatever two numbers you give it.
Pick another financial tool to jump straight to it.