ROI Calculator
Calculate and visualize your return on investment over time
Investment Details
Yearly Breakdown
About Return on Investment (ROI)
Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment. It measures the amount of return on an investment relative to the investment's cost. A high ROI means the investment's gains compare favorably to its cost. This calculator helps you project the potential ROI by considering your initial investment, ongoing contributions, and the power of compound interest over time.
How It's Calculated
Future Value (FV):
FV = PV × (1 + r/n)^(n×t) + PMT × [ ... ]
Calculates the total value from a lump sum (PV) and periodic payments (PMT).
Total Returns:
Returns = FV - Total Contributions
The net profit generated by the investment.
Return on Investment (ROI):
ROI = (Total Returns / Total Contributions) × 100%
The percentage gain relative to the amount invested.
Key Insights
- •Time is your greatest ally—even small regular contributions can grow significantly over decades.
- •Compound interest allows your returns to generate their own returns, accelerating growth.
- •Regular contributions often matter more than trying to time the market perfectly.
- •Higher compounding frequency (e.g., daily vs. annually) leads to slightly better returns.