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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

£
£

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Calculation method, coverage and version

Inputs used
Initial investment, Final value, Holding period (years).
Calculation approach
The calculator applies the rules and assumptions described in “How it works” to the values you enter. Rounding can cause small differences from an official or provider calculation.
Coverage
Mortgages & Money. UK nations, tax treatment, local rules and provider criteria can differ; check the official sources shown below before acting.
Content version
No page-specific review date is currently published. Treat the result as indicative and verify current rules independently.
Not included unless explicitly requested: personal circumstances not entered, provider discretion, future rule changes, professional fees and case-specific exceptions. Read the full calculator methodology.

Primary sources and official verification

Use these official sources to verify current rules before acting. Coverage and dates can differ across England, Scotland, Wales and Northern Ireland.

See the sitewide source policy.

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 →