Calculate the return on investment for any asset, stock or business investment.
Return on investment for any asset
This free calculator gives you instant, accurate results with no signup required. Use it to make smarter, more informed financial and life decisions.
Always double-check important financial decisions with a qualified professional. This calculator provides estimates for guidance purposes. Results may vary based on your specific circumstances.
A 20% return sounds impressive — until you learn it took 8 years to achieve, which works out to only about 2.3% annualized. Raw ROI percentages without a time component are almost meaningless for comparing investments.
Annualized return is the number that actually matters for comparison. The S&P 500 has historically returned about 10% annually before inflation, so any investment claiming to "beat the market" needs to clear that bar consistently, not just in one good year.
Also factor in risk and liquidity. A real estate investment might return 12% annually but ties up your capital for years and carries transaction costs. A volatile stock might average 15% annually but with wild swings that could force you to sell at a loss if you need cash unexpectedly.
Use the calculator above to convert any investment's raw return into an annualized figure — it's the only fair way to compare a 2-year flip against a 10-year hold, or a stock pick against a savings account.