Best Return on Investment Calculator - Comparewise

Return on Investment Calculator

For you as Canadian, several things need to line up for your long-term investment goal to be successful. This also considers taxes, inflation, your time horizon, and in addition to the investment amount and rate of return. Check out our return on investment calculator to see how profitable your investment could potentially be.

How ROI Calculators Work

The difference between both the annualized return on investment and absolute return on investment is what you must understand. The absolute return measures the stock market’s performance across shorter time frames than a year.

Using the annualized return on investment, you may assess how well an investment has performed over various holding times. 

Return on Investment Calculator Definitions

Roi Investment Calculator - Comparewise

Rate of Return

Before taxes are deducted, this referred to the accumulated annual rate of return you expect from your investments. The rate of return is referred to the accumulated profit or loss on an investment.

In other terms, the rate of return is the increase (or decrease) in value over the cost of the initial investment, usually stated as a percentage. When the ROR is positive, the investment is said to have made a profit, and when it is negative, it has suffered a loss.

The actual rate of return will be significantly influenced by the type of assets you select.

Subtracting the investment’s initial value from its ultimate value yields the rate of return for the investment (remember to include interest and dividends). The result is then multiplied by 100 and divided by the investment’s initial cost. So, a percentage will be used to represent your outcome.

Initial investment

The total sum of money you put into investments should be considered in this analysis.

Inflation rate

You would anticipate this given the typical long-term inflation rate. The Consumer Price Index is frequently used to calculate inflation. The CPI has a long-term average of 2.9% yearly from 1925 to 2016.

The highest CPI during the previous 40 years was 13.5% in 1980. The most recent complete year for which data was available, was 2016, as indicated by the Minneapolis Federal Reserve as having a CPI of 1.1% annually.

Additional Investment

This shows how much you will invest each time. Your yearly investment will grow in line with inflation if the option to modify this amount for price changes is checked.

Frequency of contribution

This shows how frequently you make contributions to your account. Weekly, biweekly, monthly, quarterly, and yearly are the available possibilities. This calculator assumes that you contribute at the start of each period.

Tax rate

This is the percentage of investment returns that you will have to pay in taxes. Everyone knows you have to pay your taxes when it reaches the end of each year.

Inflation adjustment

You can check this box if you want to adjust your future investments for inflation.

Show values after Inflation

You can check this box to see all totals adjusted for inflation. By selecting this option, you may see how much your investments would be worth today if you had that amount readily available today. 

Compound Interest

This shows the interest in your investment interest together with the previous interest. Your accrued interest will begin to create new interest more quickly the more frequently this happens.

You will need to contact your financial institution if you want to know how your interest is compounded on the investment you made.

Compounded Interest Return

This is the total after-tax return if your investment profit is accumulated yearly.

Simple Interest return

Total after-tax return in the case where the profits gotten from your investment is simple interest rather than compound interest.

Total invested capital

This shows the total amount of money invested. Included in this are both your first investment and all subsequent investments.

Investment final total

This is the final worth of your entire investment. This sum represents the entire worth of your investment in today’s dollars if you have selected the option to display values after inflation. This box will display the investment’s true value if it is left unchecked.

 Rate on Investment

The return on investment (ROI) is a financial measure that aids in weighing the advantages of an investment against its disadvantages. ROI provides you with information on the return on your investments.

It helps you choose the best investment among a variety of investment options. Your business goal and risk tolerance level will influence your investment. Additionally, you might estimate the cost of your investment and search for any hidden fees that can reduce your profits.

Typically, a percentage is used to represent the return on investment. 

Precent Return Calculator - Comparewise

Rate on Investment calculator

The ROI calculator is a tool that aids in determining the return on your investments. The ROI calculator may be used to calculate the return on investments across different periods. The formula box where you enter the investment duration, return amount, and starting investment amount makes up the ROI Calculator.

The ROI Investment Calculator displays your overall return on investment. Additionally, it displays your investment’s total return, annualized return, and CAGR, or compound annual growth rate.

Rate on Investment Formula

A ratio called return on investment measures how effective a certain investment is. It serves as the necessary starting and ending point for each ambitious investor since it outlines in straightforward figures both the potential of a future transaction and its outcomes after it is completed.

ROI is computed by dividing an investment’s return by the initial investment. This measurement is typically represented as a percentage since doing so makes comparing various investment plans simpler.

Using the ROI investment calculator, you can quickly determine which investment plans will be profitable for your account and which will result in a loss.

Mathematically;

ROI = (net profit / total investment) x 100.

The difference between the investment’s net benefit and the net cost is known as the net profit. The amount one has chosen to invest in a particular project is the overall investment.

We multiply the ratio by 100 to get the answer in percentage form. Our calculator for return on investment makes use of the aforementioned formula.

ROI is a popular measure because of how straightforward it is to compute and how it answers questions about the facts and data at hand. Additionally, it is a very well-known word, so if you use it or ask someone to do it for you, they will almost certainly understand what you mean.

Difficulty In Using An ROI Investment Calculator

ROI may indeed be used as a measure to determine how profitable practically everything is. However, the fact that it can be used in any situation also makes it challenging to use. The ROI formula itself may be straightforward, but the true issue arises when individuals fail to understand the proper meanings of “cost” and/or “gain” or the variability at play.

For example, investor A would calculate capital expenditures, taxes, and insurance when calculating the ROI for a possible real estate investment, but investor B might merely use the purchase price. Investor A would calculate capital gains taxes into their ROI calculations for a potential investment, but Investor B might not.

The clear difference with ROI, though, is that there is no time limit. Think about a potential investor who has to decide between land investments with a 50% return on investment or a diamond with a 1,000% return on investment.

The diamond first appears to be the easy pick but is this the case if the rate of investment for the diamond is computed over 50 years as compared to that of the land, which is determined over several months?  

Because of this, ROI serves as a good reference point for analyzing investments, but it must be enhanced by other, more precise measures.

Annualized ROI Investment Calculator

Investing return is given as an annual percentage. Determining if an investment was better at first might be challenging. As in the case where one produced a total return of 20% in three years and another produced a total return of 35% in five.

The idea is that when comparing investment returns, especially if they were held for various lengths of time, it can be fairer to represent them on an annualized, or yearly, basis.

The annualized ROI, which is a rate that is often more useful for comparison, is a method used by the ROI Calculator to overcome this drawback. The ROI number is frequently less relevant than the annualized ROI figure when comparing calculator results for two computations; the comparison between land and diamonds above is an excellent illustration of this.

Even if greater annualized ROI is desirable, it is not unusual to see lower ROI investments being selected for their reduced risk. It is not also unusual to see other advantageous conditions since the investment risk and other circumstances are not represented in the ROI rate in real life. 

Calculating Annualized Return

Despite its flexibility, it has a significant drawback in terms of return on investment: It ignores time as a key element. To obtain accurate data while comparing two businesses, one must ensure that they are dispersed throughout the same time frame.

If not, it would appear that they both have an expected ROI of, say, 35%, with the first scenario achieving it in a year and the second requiring four years to finish.

A 35% ROI over one year is preferable to over four years. Consequently, you may compute and examine the annualized return on investment to overcome this obstacle. The calculation in this instance is:

Annualized ROI = [(Final investment value / Initial investment value) ^ (1 / number of years)] – 1.

Thanks for checking out our return on investment calculator.

You might also like…

Initial Investment (Max. $1,000,000)

Current Value (Max. $1,000,000)

Investment Duration (Max. 30 Years)

 Years         

Result

Total Return
Total Increase
Yearly Increase

Based on this information, you will have gained on your investment (). That's per year over years.

Return on Investment Calculator

For you as Canadian, several things need to line up for your long-term investment goal to be successful. This also considers taxes, inflation, your time horizon, and in addition to the investment amount and rate of return. Check out our return on investment calculator to see how profitable your investment could potentially be.

How ROI Calculators Work

The difference between both the annualized return on investment and absolute return on investment is what you must understand. The absolute return measures the stock market’s performance across shorter time frames than a year.

Using the annualized return on investment, you may assess how well an investment has performed over various holding times. 

Return on Investment Calculator Definitions

Roi Investment Calculator - Comparewise

Rate of Return

Before taxes are deducted, this referred to the accumulated annual rate of return you expect from your investments. The rate of return is referred to the accumulated profit or loss on an investment.

In other terms, the rate of return is the increase (or decrease) in value over the cost of the initial investment, usually stated as a percentage. When the ROR is positive, the investment is said to have made a profit, and when it is negative, it has suffered a loss.

The actual rate of return will be significantly influenced by the type of assets you select.

Subtracting the investment’s initial value from its ultimate value yields the rate of return for the investment (remember to include interest and dividends). The result is then multiplied by 100 and divided by the investment’s initial cost. So, a percentage will be used to represent your outcome.

Initial investment

The total sum of money you put into investments should be considered in this analysis.

Inflation rate

You would anticipate this given the typical long-term inflation rate. The Consumer Price Index is frequently used to calculate inflation. The CPI has a long-term average of 2.9% yearly from 1925 to 2016.

The highest CPI during the previous 40 years was 13.5% in 1980. The most recent complete year for which data was available, was 2016, as indicated by the Minneapolis Federal Reserve as having a CPI of 1.1% annually.

Additional Investment

This shows how much you will invest each time. Your yearly investment will grow in line with inflation if the option to modify this amount for price changes is checked.

Frequency of contribution

This shows how frequently you make contributions to your account. Weekly, biweekly, monthly, quarterly, and yearly are the available possibilities. This calculator assumes that you contribute at the start of each period.

Tax rate

This is the percentage of investment returns that you will have to pay in taxes. Everyone knows you have to pay your taxes when it reaches the end of each year.

Inflation adjustment

You can check this box if you want to adjust your future investments for inflation.

Show values after Inflation

You can check this box to see all totals adjusted for inflation. By selecting this option, you may see how much your investments would be worth today if you had that amount readily available today. 

Compound Interest

This shows the interest in your investment interest together with the previous interest. Your accrued interest will begin to create new interest more quickly the more frequently this happens.

You will need to contact your financial institution if you want to know how your interest is compounded on the investment you made.

Compounded Interest Return

This is the total after-tax return if your investment profit is accumulated yearly.

Simple Interest return

Total after-tax return in the case where the profits gotten from your investment is simple interest rather than compound interest.

Total invested capital

This shows the total amount of money invested. Included in this are both your first investment and all subsequent investments.

Investment final total

This is the final worth of your entire investment. This sum represents the entire worth of your investment in today’s dollars if you have selected the option to display values after inflation. This box will display the investment’s true value if it is left unchecked.

 Rate on Investment

The return on investment (ROI) is a financial measure that aids in weighing the advantages of an investment against its disadvantages. ROI provides you with information on the return on your investments.

It helps you choose the best investment among a variety of investment options. Your business goal and risk tolerance level will influence your investment. Additionally, you might estimate the cost of your investment and search for any hidden fees that can reduce your profits.

Typically, a percentage is used to represent the return on investment. 

Precent Return Calculator - Comparewise

Rate on Investment calculator

The ROI calculator is a tool that aids in determining the return on your investments. The ROI calculator may be used to calculate the return on investments across different periods. The formula box where you enter the investment duration, return amount, and starting investment amount makes up the ROI Calculator.

The ROI Investment Calculator displays your overall return on investment. Additionally, it displays your investment’s total return, annualized return, and CAGR, or compound annual growth rate.

Rate on Investment Formula

A ratio called return on investment measures how effective a certain investment is. It serves as the necessary starting and ending point for each ambitious investor since it outlines in straightforward figures both the potential of a future transaction and its outcomes after it is completed.

ROI is computed by dividing an investment’s return by the initial investment. This measurement is typically represented as a percentage since doing so makes comparing various investment plans simpler.

Using the ROI investment calculator, you can quickly determine which investment plans will be profitable for your account and which will result in a loss.

Mathematically;

ROI = (net profit / total investment) x 100.

The difference between the investment’s net benefit and the net cost is known as the net profit. The amount one has chosen to invest in a particular project is the overall investment.

We multiply the ratio by 100 to get the answer in percentage form. Our calculator for return on investment makes use of the aforementioned formula.

ROI is a popular measure because of how straightforward it is to compute and how it answers questions about the facts and data at hand. Additionally, it is a very well-known word, so if you use it or ask someone to do it for you, they will almost certainly understand what you mean.

Difficulty In Using An ROI Investment Calculator

ROI may indeed be used as a measure to determine how profitable practically everything is. However, the fact that it can be used in any situation also makes it challenging to use. The ROI formula itself may be straightforward, but the true issue arises when individuals fail to understand the proper meanings of “cost” and/or “gain” or the variability at play.

For example, investor A would calculate capital expenditures, taxes, and insurance when calculating the ROI for a possible real estate investment, but investor B might merely use the purchase price. Investor A would calculate capital gains taxes into their ROI calculations for a potential investment, but Investor B might not.

The clear difference with ROI, though, is that there is no time limit. Think about a potential investor who has to decide between land investments with a 50% return on investment or a diamond with a 1,000% return on investment.

The diamond first appears to be the easy pick but is this the case if the rate of investment for the diamond is computed over 50 years as compared to that of the land, which is determined over several months?  

Because of this, ROI serves as a good reference point for analyzing investments, but it must be enhanced by other, more precise measures.

Annualized ROI Investment Calculator

Investing return is given as an annual percentage. Determining if an investment was better at first might be challenging. As in the case where one produced a total return of 20% in three years and another produced a total return of 35% in five.

The idea is that when comparing investment returns, especially if they were held for various lengths of time, it can be fairer to represent them on an annualized, or yearly, basis.

The annualized ROI, which is a rate that is often more useful for comparison, is a method used by the ROI Calculator to overcome this drawback. The ROI number is frequently less relevant than the annualized ROI figure when comparing calculator results for two computations; the comparison between land and diamonds above is an excellent illustration of this.

Even if greater annualized ROI is desirable, it is not unusual to see lower ROI investments being selected for their reduced risk. It is not also unusual to see other advantageous conditions since the investment risk and other circumstances are not represented in the ROI rate in real life. 

Calculating Annualized Return

Despite its flexibility, it has a significant drawback in terms of return on investment: It ignores time as a key element. To obtain accurate data while comparing two businesses, one must ensure that they are dispersed throughout the same time frame.

If not, it would appear that they both have an expected ROI of, say, 35%, with the first scenario achieving it in a year and the second requiring four years to finish.

A 35% ROI over one year is preferable to over four years. Consequently, you may compute and examine the annualized return on investment to overcome this obstacle. The calculation in this instance is:

Annualized ROI = [(Final investment value / Initial investment value) ^ (1 / number of years)] – 1.

Thanks for checking out our return on investment calculator.

You might also like…

Discover Investment Opportunities

Make your money do more.

12 Results

Advertiser disclosure

Offers shown here are from third-party advertisers. We are not an agent, representative, or broker of any advertiser, and we don’t endorse or recommend any particular offer. Information is provided by the advertiser and is shown without any representation or warranty from us as to its accuracy or applicability. Each offer is subject to the advertiser’s review, approval, and terms. We receive compensation from companies whose offers are shown here, and that may impact how and where offers appear (and in what order). We don’t include all products or offers out there, but we hope what you see will give you some great options.

Young investors can trade stocks and ETFs, all for free.
Min Investment
$0
Target Return
Varied
Get 50 Free Trades on Canada's #1 trading platforms.
Min Investment
$0
Target Return
Varied
Get $20 CAD of BTC with promo code: COMPAREWISE
Min Investment
$100
Target Return
4-7%
Earn passive income, start investing in real estate.
Min Investment
$1
Target Return
Varied
Use code KKZH8A when you sign up to get 2 free stocks
Min Investment
$1
Target Return
Varied
Get a $50 bonus when you sign up and deposit $250.
Min Investment
$50
Target Return
Varied
A new passive income asset class, peer-to-peer lending.
Min Investment
$1
Target Return
Varied
Retire up to 30% wealthier with Questwealth Portfolio.
Min Investment
$1
Target Return
Varied
Earn rewards when you buy and sell crypto on BlockFi
Min Investment
$1
Target Return
Up to 8.6%
Buying and seucring gold has never beeng more simple and affordable.
Min Investment
$1
Target Return
Varied
Get a $25 bonus when you sign up and trade.
Min Investment
$10
Target Return
Varied
Online real estate investment in one platform
Min Investment
$25,000
Target Return
9-24%

comparewise

September 3, 2022
Fact Checked

Browse calculators by type

Check out business loan calculators on Comparewise...

Check out car loan calculators on Comparewise to s...

Check out date and time calculators on Comparewise...

Check out health calculators on Comparewise to see...

It's never been easier to calculate your monthly p...

Check out our investment calculators to see how mu...

Check out mathematics calculators on Comparewise t...

Check out mortgage calculators to see what you can...

Our personal finance calculators help you compare ...

Check out our personal loan calculators to see wha...

Check out student calculators to check your GPA an...

Check out tax calculators to see different income ...

FAQs about our Return on Investment Calculator

How to calculate return on investment

ROI is determined by deducting the investment cost from its final value. After that, you need to divide the result by the cost of the investment, and then multiply the result by 100.

How to calculate the rate of return on investment

By deducting the investment’s initial value from its current value and then dividing the result by the original investment, one can determine a simple rate of return. The outcome is multiplied by 100 before reporting it as a percentage.

How to calculate annual return on investment

The annualized ROI calculation addresses one of the key problems with the basic ROI calculation. The holding period, commonly known as the holding period, is not considered in the fundamental ROI calculation. The following is the formula to determine annualized ROI:

How to calculate return on investment property

The ROI of an investment is often calculated as the investment gain minus the investment cost, divided by the cost.

However, some estimates may change based on the kind of investment being thought about. The ROI will ultimately be impacted by variables like the cost of repairs and maintenance, the amount borrowed to start the investment, and specific mortgage terms.

What is my return on investment calculator?

Return on investment (ROI) provides an approximate indicator of how profitable your business is. The return on investment (ROI) is calculated by reducing the investment’s initial cost from its final value, dividing the result by the cost of the investment, and finally multiplying the result by 100.

How to calculate return on stock investment

There are several alternative ways to calculate total return depending on the exact form of the measure you’re looking for.

Follow these steps to calculate an investment’s overall total return:

  • You must first calculate the amount of capital gains it has generated since you purchased it. For instance, your capital gain is $10 per share if you purchased a stock for $50 and it is currently trading for $60.
  • The dividends and any payments that the investment has paid must then be added up throughout your whole holding period. You can get the investment’s total return in dollars by multiplying this amount by your capital gains.
  • Third, to represent total return as a percentage, which is often more useful, you can compute the dollar value of total return, divide it by the cost of the investment, and then multiply the result by 100.
  • Finally, you’ll need to do some little more difficult math to annualize the total return. Add 1 to the decimal representation of the percentage total return you calculated in the preceding step. Next, multiply this by 1 and divide it by the number of years you kept the investment. Finally, deduct 1.

You may also like:

Algebra is an area of mathematics that involves the application of calculations and for...
To increase your chances of conceiving a child, becoming familiar with your unique mens...
Do you have excessive auto insurance costs? The majority of Canadian drivers ponde...
In Canada, there are quite a number of things to take into consideration when deciding ...
One of the most important aspects of a course is understanding and setting the grading ...
Car loan?
Personal Loan?

Top deals await you just a short
application away!