A "good" ROI depends on the risk profile and asset class. Historically, the S&P 500 has returned about 10% annually before inflation. For safer investments like bonds, 4-5% is common, while high-risk ventures often target 20%+.

How do I calculate Annualized ROI?

Annualized ROI corrects for the time period of the investment. The formula is: ((1 + Total ROI as decimal)^(1 / Number of Years) - 1) * 100. This helps compare investments of different durations.

What is the difference between Simple ROI and Real ROI?

Simple ROI only looks at nominal gains. Real ROI adjusts for inflation, giving you the actual purchasing power gained. In 2026, accounting for inflation is crucial for accurate long-term planning.

Does this calculator factor in taxes?

Yes, this calculator allows you to input an estimated tax rate (e.g., Capital Gains Tax) to see your net return after taxes.

Investment Return / ROI Calculator (Top Rated 2026)

Stop guessing your profits. Use the fastest and most accurate ROI calculator updated for 2026 to determine your simple, annualized, and inflation-adjusted returns in seconds.

How We Calculate Investment Returns

Transparency is key to trust. Our algorithms follow standard financial formulas widely accepted by investment professionals and institutions in 2026.

The Core Formulas

Simple ROI: ((Final Value - Initial Investment) / Initial Investment) × 100%
Annualized ROI (CAGR): ((Final Value / Initial Investment)^(1 / Years)) - 1
Real ROI (Inflation Adjusted): Uses the Fisher Equation approximation to adjust your nominal return by the entered inflation rate.

Investment Return Examples (2026)

The following table demonstrates how different investment scenarios perform over various time horizons. These examples show Simple ROI, Annualized ROI (CAGR), and Real ROI adjusted for 2.5% inflation. Tax rates are estimated at 15% for long-term capital gains.

Initial Investment	Final Value	Years	Gross Profit	Net Profit (After Tax)	Simple ROI	Annualized ROI	Real ROI (2.5% Inflation)
$10,000	$15,000	5	$5,000	$4,250	42.5%	7.3%	4.7%
$25,000	$50,000	10	$25,000	$21,250	85.0%	6.3%	3.7%
$50,000	$100,000	7	$50,000	$42,500	85.0%	9.1%	6.4%
$100,000	$200,000	15	$100,000	$85,000	85.0%	4.2%	1.7%
$10,000	$20,000	3	$10,000	$8,500	85.0%	23.1%	20.1%
$5,000	$12,500	1	$7,500	$6,375	127.5%	127.5%	122.0%

Tax rate assumed at 15% for long-term capital gains. Inflation rate of 2.5% used for Real ROI calculations. Annualized ROI (CAGR) shows the equivalent annual return rate, making it easier to compare investments of different durations.

Why Use This Tool?

✓Instant Results: No page reloads, calculations happen in real-time (INP < 200ms).
✓Inflation Ready: See your real purchasing power, not just the number on the screen.
✓Tax Estimation: Factor in Capital Gains Tax to plan your net profit.

Frequently Asked Questions (FAQ)

What is a good ROI in 2026?

A "good" ROI is relative to your risk tolerance. For a diversified stock portfolio, 7-10% (nominal) is the historical benchmark. For real estate or high-risk assets, investors often look for 15-20% or more.

Why is Annualized ROI important?

If you make 20% in 1 year, that's great. If you make 20% over 10 years, that's less than 2% per year. Annualized ROI helps you compare investments of different lengths on an equal footing.

Does this calculate Compound Interest?

Yes, the "Annualized ROI" metric implicitly accounts for compounding by showing the equivalent compound annual growth rate (CAGR) needed to achieve your result.