Verify investment growth. Calculate return on investment percentage, absolute gains, and annualized compound rate returns.
Return on Investment (ROI) is a popular financial metric used to evaluate the efficiency or profitability of an investment or compare the efficiency of several different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost.
ROI (%) = [(Returned Value − Invested Value) ÷ Invested Value] × 100
Annualized ROI (%) = [(Returned Value ÷ Invested Value) ^ (1 ÷ n) − 1] × 100
Where:
n = Number of years of the investment
While simple ROI calculates absolute return without considering time frames, Annualized ROI provides a more accurate performance index of capital compound rates over multi-year durations.
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