Annualized ROI Calculator

About this calculator

This calculator converts a total return earned over an arbitrary holding period, whether that's eight months or six years, into an equivalent annual rate, making it possible to compare investments that were held for different lengths of time on the same footing. A large total return over many years can actually represent a lower annual rate than a smaller return earned quickly, and this normalization is what makes that visible.

Investors use it to compare the performance of different assets, such as a stock held for two years against a property held for ten, or to judge whether a given return was actually good once the time it took to earn it is factored in rather than looking at the raw percentage alone.