Investment Return Calculator
Calculate your investment's return on investment (ROI), accounting for fees.
What this calculator does
Calculates your total and annualized return on an investment, factoring in fees paid along the way — giving you a more honest picture than a simple "final value minus initial investment" comparison.
Who this is for
Anyone reviewing how a specific investment actually performed, comparing returns across different holding periods (where annualized return matters more than total return), or checking how much fees ate into their real gains.
How this calculator works
Total ROI = (final value − initial investment − fees) / initial investment. Annualized return converts a multi-year total return into a comparable yearly rate, using the compound annual growth rate (CAGR) formula.
The formula
Total ROI% = ((Final Value − Initial Investment − Fees) ÷ Initial Investment) × 100. Annualized return (CAGR) = ((Final Value ÷ Initial Investment)1/years − 1) × 100.
Worked example
$10,000 invested, growing to $13,500 over 3 years, with $200 in total fees paid: Total ROI = (13,500 − 10,000 − 200) ÷ 10,000 = 3,300 ÷ 10,000 = 33% total return. Annualized: (13,500 ÷ 10,000)1/3 − 1 = 1.350.333 − 1 ≈ 10.5% per year — notice this is meaningfully lower than simply dividing 33% by 3 (which would incorrectly suggest 11%), because CAGR properly accounts for compounding.
Where your final value came from
Run the calculator above to see your initial investment, net gain, and fees as a share of your final value.
Common mistakes
- Ignoring fees entirely. Expense ratios, advisory fees, and transaction costs compound against you the same way returns compound for you — small annual fees add up significantly over long holding periods.
- Confusing total return with annualized return. A 35% total return over 3 years is roughly 10.5% annualized, not 35%/year — always check which figure you're looking at when comparing investments.
- Not adjusting for inflation. A nominal 8% annual return is closer to 5-6% in real purchasing power terms after typical inflation.
- Dividing total return by years instead of using CAGR. This linear approximation overstates annualized return, especially over longer periods, since it doesn't account for the compounding effect between years.
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Frequently Asked Questions
What's the difference between total ROI and annualized return?
Total ROI is your overall percentage gain across the whole holding period. Annualized return (CAGR) converts that into an equivalent yearly rate, which makes it possible to fairly compare investments held for different lengths of time.
Why do fees matter so much over time?
Fees reduce the base amount that compounds going forward, so their impact grows the longer you hold the investment — a seemingly small 1% annual fee difference can amount to a large gap in final value over decades.
Is this adjusted for inflation?
No, this shows nominal returns. To estimate real purchasing power, subtract the inflation rate over your holding period from the figures shown.