How this calculator works
Ending value and cash income are reduced by the initial investment and any additional fees. Dividing this net gain by the initial cost gives the holding-period return. Use each cash flow once: income already included in the ending value should not be entered again. Taxes, leverage and currency changes are excluded.
Formula
G = V + D - C - F; ROI = G/C, displayed as a percentage. V is ending value, D cash income, C positive initial cost and F additional fees. The initial cost remains the denominator even when fees are entered.
Worked example
An investment costing $1,000 ends at $1,200, pays $50 in cash and incurs $20 in additional fees. Net gain is $230 and ROI is 23%. An ending value of $700 with no income and $25 in fees produces a $325 loss and -32.5% ROI.
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Frequently asked questions
Is ROI an annual return?
No. It covers the whole holding period. CAGR can express an equivalent annual growth rate when there are no interim cash flows.
Can the return be below -100%?
Yes. Additional fees can make the total loss larger than the initial investment. A positive initial cost is required to define the percentage.
Does a longer holding period increase the ROI percentage?
No. ROI covers the whole holding period and is not annualized, so the same gain gives the same percentage over a longer period.