Investment Return Calculator
Calculate the return on investment (ROI) for your financial investments.
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$
Total Return
$0
ROI
0.00%
Annualized Return
0.00%
Investment Summary
Initial Investment:$10,000
Final Value:$15,000
Investment Period:3 years
Total Return:$0
Return on Investment:0.00%
Annualized Return:0.00%
Understanding Your Results
Total Return
The absolute difference between your final value and initial investment.
Return on Investment (ROI)
The percentage gain or loss on your investment, calculated as (Final Value - Initial Investment) / Initial Investment.
Annualized Return
The compound annual growth rate (CAGR) of your investment, which shows the year-over-year growth rate as if the investment had grown at a steady rate.
Investment Comparison
| Return Type | Poor | Average | Good | Excellent |
|---|---|---|---|---|
| Stocks | <2% | 2-5% | 5-10% | >10% |
| Bonds | <1% | 1-3% | 3-5% | >5% |
| Real Estate | <3% | 3-6% | 6-10% | >10% |
| Your Investment | 0.00% annually | |||
Understanding Investment Returns
Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment. It directly measures the amount of return on a particular investment, relative to the investment's cost.
Different Types of Investment Returns
- Total Return: The absolute gain or loss on an investment.
- ROI Percentage: The percentage gain or loss on an investment.
- Annualized Return: The average annual return over the investment period, accounting for compounding.
Factors Affecting Investment Returns
- Time Horizon: Longer investment periods often (but not always) reduce volatility and increase the likelihood of positive returns.
- Risk Level: Higher-risk investments typically offer the potential for higher returns, but also come with a greater chance of loss.
- Fees and Expenses: Investment costs can significantly impact your net returns over time.
- Tax Implications: Taxes on investment gains can reduce your effective return.
Using ROI in Investment Decisions
ROI is a versatile and straightforward metric that can be used to:
- Compare the profitability of different investments
- Evaluate the performance of your investment portfolio
- Make informed decisions about future investments
- Set realistic investment goals based on historical performance