Mortgages & MoneyLive

ROI Calculator

Total and annualised return on any investment.

Short answer

ROI = (final − initial) / initial × 100. Annualised ROI = (final/initial)^(1/years) − 1, which lets you fairly compare investments of different lengths.

Investment

Initial investment

Final value

Holding period (years)

Fill in the fields above to see your result instantly.

How it works

Total ROI is straightforward percentage change. Annualised (CAGR — Compound Annual Growth Rate) lets you compare 1-year and 10-year investments fairly.

Worked example

£10k → £13.5k over 3 years: +35% total, +10.52% annualised.

Who should use this

•Property investors
•Stock and fund pickers
•Anyone comparing returns on big purchases

Common mistakes

×Comparing total returns across different time periods (use annualised)
×Ignoring tax on dividends and capital gains

Frequently asked questions

What's a 'good' ROI?▾

Depends on risk. Cash ISAs ~4-5%, FTSE long-run ~7% nominal, leveraged property can be 10%+ but with concentration risk.

Related calculators

Compound Interest →Future Value →Rental Yield →