- Use it when you need a quick decision-ready view for ROI + Annualized.
- Use it when you want to understand the formula and inputs before switching to the interactive tool.
- Use it when comparing investment, loan, or capital allocation scenarios.
- Initial Value
- Final Value
- Holding Years
Example inputs
- Initial investment: 20,000
- Final value: 26,000
- Holding period: 30 months
Formula logic
Total ROI = (final value - initial value) / initial value. Annualized ROI converts that gain over the holding period.
How to read the result
Annualized ROI gives a comparable rate, but it should be reviewed alongside risk, liquidity, taxes, and cash-flow timing.
- Comparing total ROI across different time periods.
- Ignoring taxes and transaction costs.
- Using ROI alone to compare assets with very different risk.
Calculate total ROI and annualized return on investment. Compare scenarios, measure performance, and make data-driven investment decisions. Free ROI calculator. This page explains the main inputs and output interpretation before you switch into the full calculator.
Use the interactive tool when you already know your assumptions and want detailed tables, charts, or CSV export.
The formula uses the following inputs: Initial Value, Final Value, Holding Years. Enter them in the calculator above to get precise results.
Yes, The Capital Deck's ROI + Annualized is completely free with no sign-up required.
Yes, the calculator works on all modern browsers on desktop and mobile devices.
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