ROI Calculator
Compute return on investment and the annualized ROI.
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Inputs
$
$
ROI
$50.00
Net profit: $5,000.00
Net profit
$5,000.00
Annualized ROI
14.47%
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How it works
ROI = (final − initial) ÷ initial × 100. Annualized ROI = (final/initial)^(1/years) − 1.
Frequently asked questions
Are these returns guaranteed?
No — projections assume your inputs hold steady. Real markets fluctuate; treat results as planning estimates.
What's a reasonable long-term return?
Diversified U.S. stock portfolios have averaged 7–10% before inflation over the long run.
Should I include inflation?
Yes if you care about purchasing power. Use a real return = nominal return − inflation rate.
Do taxes affect this?
Inside tax-advantaged accounts (401k, IRA, HSA) growth is tax-deferred or tax-free. Taxable accounts pay annual tax on distributions and on gains when sold.
Does dollar-cost averaging help?
It smooths timing risk and is a behavioral win even if a lump-sum invested earlier has higher expected return.
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