Loan Lyze

Investment return estimator

ROI Calculator

Measure total and annualized return using your invested capital, final value, income, costs, and holding period.

Method reviewed November 7, 2026 · Educational estimate

Investment details

Measure the full return

The amount paid or contributed at the start.

The sale proceeds or current value before separate income.

Dividends, rent, distributions, or other cash received.

Fees, improvements, maintenance, or other invested cash.

Used to estimate the compound annualized return.

Estimated return

Total ROI

30.8%

Return across the entire holding period.

Annualized ROI

9.4%

Equivalent compounded return per year.

Net gain or loss

$8,000

Break-even final value

$24,000

Initial investment$25,000
Additional costs$1,000
Total invested capital$26,000
Final value + income$34,000
The investment produced an estimated $8,000 gain over 3 years.

How ROI is calculated

First, the calculator adds the initial investment and additional costs to get total invested capital. It adds final value and additional income to get total proceeds. Net gain is proceeds minus invested capital.

ROI = Net gain ÷ Invested capital × 100

Annualized ROI = (Proceeds ÷ Invested capital)^(1 ÷ years) − 1

Reading the results

Total ROI

The percentage gain or loss over the complete holding period, without adjusting for how long the investment was held.

Annualized ROI

The constant compound annual rate that would produce the same start-to-finish multiple over the entered period.

Net gain or loss

Total final value and income minus the initial investment and additional costs.

Break-even final value

The final value needed for proceeds to equal invested capital after accounting for additional income.

Important limitations

  • Annualized ROI assumes all proceeds arrive at the end; use an IRR calculation when cash-flow dates matter.
  • Results do not account for taxes, inflation, financing costs, risk, opportunity cost, or reinvestment.
  • ROI definitions vary. Keep inputs consistent when comparing investments and avoid counting a cost or income item twice.
  • Past or estimated returns do not guarantee future performance.

Frequently asked questions

What is ROI?

Return on investment (ROI) measures gain or loss as a percentage of total invested capital. It makes differently sized investments easier to compare, but it does not show risk.

What is annualized ROI?

Annualized ROI converts the total return into an equivalent compound yearly rate. This calculator treats all proceeds as if they were received at the end of the holding period.

Which costs should I include?

Include cash required to acquire, hold, improve, or sell the investment when those costs are not already reflected in the final value or income figures.

Does this calculator include taxes or inflation?

No. Results are nominal and pre-tax. Taxes, inflation, financing, and the timing of intermediate cash flows can materially change the effective return.