Question 1

What is ROI and how is it calculated?

Accepted Answer

ROI (Return on Investment) measures the profitability of an investment. Formula: ROI = ((Return - Investment) / Investment) × 100%. A positive ROI means profit, negative means loss.

Question 2

What is annualized return rate?

Accepted Answer

Annualized return converts total ROI into a yearly rate using the formula: Annualized ROI = ((1 + Total ROI)^(1/years) - 1) × 100%. This allows comparison across investments of different durations.

Question 3

How to use this ROI calculator?

Accepted Answer

Enter your investment amount, return amount, and investment period in years. Click 'Calculate' to see ROI%, annualized return, and net profit. You can add multiple investment records to compare them visually.