ROI Calculator: Net Gain and Annualized Return
Calculate investment return including initial fees and cash distributions. Compare total ROI with an annualized equivalent over your holding period.
Your inputs
Your result
Enter your values, then choose Calculate.
Estimate based on your inputs. Fees, taxes and market changes are included only where explicitly entered.
Calculation breakdown
Method, assumptions and worked example
Total invested cost = initial investment + entered fees. Net gain = ending value + distributions − invested cost. ROI = net gain ÷ invested cost × 100.
Worked example
Invest 1,000 and pay 20 in costs. Ending value of 1,200 plus 40 distributions gives 1,240 of proceeds. Net gain is 220 and ROI is 21.57%. Over two years, the annualized equivalent is approximately 10.26%.
Annualized return = [(ending value + distributions) ÷ invested cost]1/years − 1. It treats all proceeds as if received at the end. It is not an internal rate of return for irregular cash flows, and it does not account for reinvestment timing.
Enter sale costs by subtracting them from ending value, without also adding them to fees. Negative returns are supported; zero proceeds produces a total loss of 100%. Taxes, inflation and opportunity cost are excluded unless reflected in the entered amounts.
Frequently asked questions
Is this IRR?
No. IRR accounts for the dates of multiple cash flows. This model assumes a single starting cost and end-period proceeds.
Can ROI be negative?
Yes. A loss occurs when proceeds are below total invested cost.
Sources and review
Formula and content reviewed on 9 October 2026. Examples are hypothetical. Tax years and model limits are stated above; this page does not receive live rates.