You enter an initial investment amount, the final value, and optionally the number of years held. Total ROI = (Final − Initial) / Initial × 100. If you provide a holding period, annualized ROI is calculated as (Final / Initial)^(1/years) − 1, which is the compound annual growth rate (CAGR). The holding period field is optional — without it, only total ROI is shown.
ROI is the total cumulative return over the entire period. CAGR (annualized ROI) spreads that return evenly across each year as if it grew at a constant rate. A 100% total ROI over 10 years is about 7.2% annualized.
For the most accurate picture, subtract any fees or commissions from your final value before entering it. This calculator doesn't model taxes separately, so using after-fee values gives a cleaner result.
Yes. Enter your total acquisition cost (price + closing costs + renovations) as the initial investment and the net sale proceeds (after agent fees and closing costs) as the final value. Include the holding period for an annualized comparison.
It depends on the asset class and risk. The S&P 500 has historically returned about 10% annually (before inflation). Real estate typically targets 8–12% annualized. A "good" ROI is one that exceeds what you could earn in a comparable-risk alternative.
Estimate only. Results reflect your inputs and standard formulas — they are not financial, tax, legal, health, or investment advice. Verify important decisions with a qualified professional.