What is ROI and Why Does Annualized ROI Matter?
ROI (Return on Investment) is a simple ratio that divides the net profit of an investment by its initial cost. While Total ROI shows you how much you made in total, Annualized ROI is more useful because it shows your average yearly return.
For example, a 50% return is great if it happened over 1 year, but less impressive if it took 10 years. By using our ROI calculator, you can effectively compare the performance of different assets like stocks, mutual funds, or small business investments on an equal playing field.