Worked examples
| Invested | Final value | Years | Total ROI |
|---|---|---|---|
| $1,000 | $1,500 | 3 | 50% |
| $5,000 | $10,000 | 5 | 100% |
| $10,000 | $9,000 | 2 | -10% |
Common questions
What's the difference between total and annualized ROI?
Total ROI is the overall percent gain, while annualized ROI spreads that across the years as a compound rate. Annualized lets you compare investments held for different lengths of time.
How is doubling time figured?
It's based on the annualized return, often approximated by the rule of 72. A 9 percent yearly return doubles money in about eight years.