ROI vs Annualized ROI
Understand raw return vs time‑adjusted growth so you can compare investments fairly.
Estimated reading time: 2 minutes
What it does
Shows two views of an investment. Simple ROI is total gain; annualized ROI spreads that gain per year so you can compare things held for different lengths.
How to use it
Enter starting amount, ending value, and time in years; the numbers update at once.
- Initial Investment
- Final Value (today or sale)
- Time (years, can be decimal)
- Example: 10000 → 15000 in 2 years ≈ 50% ROI, lower annualized rate.
When to use it
Use simple ROI for a quick check when holding times match. Use annualized ROI to compare deals or funds with different time lengths.
Interpreting results
Higher simple ROI means more total profit; higher annualized ROI means faster pace. A small quick gain can beat a large slow gain; weak annualized return vs similar risk may signal moving funds.
Related
Continue exploring with the Break-Even Made Simple guide or see long‑term payment structure detail in Mortgage Payment Breakdown. You can also browse every tool on the calculator dashboard.