What this tool does
Calculate net gain, simple return on investment (ROI) and annualized return from consistent cash inputs.
How to use it
- Enter the initial investment and final value.
- Add other income, fees and holding period.
- Calculate and verify that all amounts use the same currency and valuation date.
Formula and method
Ending total = final value + additional income − fees. Net gain = ending total − initial investment. ROI = net gain÷initial×100. Annualized return = ((ending total÷initial)^(1÷years)−1)×100 when the values permit it.
Worked example
An initial 1,000, final value 1,300, extra income 100, fees 50 and two years gives net gain 350, simple ROI 35%, and annualized return about 16–17%.
Common uses
- Comparing investments over different periods
- Including income and explicit fees
- Separating total gain from annualized pace
Limitations
ROI alone does not measure risk, inflation, taxes, timing of intermediate cash flows or opportunity cost. Annualization assumes one start and ending total and is unsuitable for irregular deposits; use a cash-flow return method for those cases.
FAQ
Why are simple and annualized ROI different?
Simple ROI is the whole-period change; annualized return converts that change to a compounded yearly pace.
Can I enter several contributions?
Not accurately. Combine them only for a rough view; irregular dated cash flows require another method such as XIRR.