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ROI Calculator

See both your simple return and your annualized rate — the only fair way to compare investments of different lengths.

Investment details

Total profit

$5,000

Simple ROI

50.00%

Total return over the holding period

Annualized return

14.47%

CAGR — comparable across timeframes

Analysis & insights

On a $10,000 investment that grew to $15,000 over 3 years, you earned $5,000 in profit. Simple ROI: 50.0%. Annualized return: 14.5%. You're outperforming the long-term S&P 500 average — strong result. Verify all costs (fees, taxes, transaction costs) are included before celebrating.

Above-market return

Beating the S&P 500 long-term is rare. Verify the calculation includes all costs (fees, taxes, transaction costs).

Risk & benchmark gauge

Current band

Above-market

14.5% annualized

0255075100
LossBelow inflationMarket rangeAbove-market

Industry benchmarks

  • Your annualized return14.5%
  • US inflation (long-term)~3%
  • High-yield savings4-5%
  • S&P 500 long-term~10%
  • Average VC fund return~12-15%

Key insights

Simple ROI vs annualized

Simple ROI (50.0%) ignores time — a 30% return over 1 year is dramatically better than 30% over 10. ALWAYS compare investments using annualized.

Opportunity cost check

You beat the alternative of buying an S&P 500 index fund — strong active choice.

After-tax matters more

Long-term capital gains (held > 1 year) tax at 0/15/20%. Short-term gains tax at ordinary income rates (10-37%). Holding 12+ months can save 10-15 percentage points of tax.

Scenario analysis

You

Current result

14.5%

$10,000 → $15,000 over 3 years.

After 30% tax (LT cap gain)

12.3%

-15% rate effect

Long-term capital gains tax on appreciation. Adjusts net return by ~15-20%.

Reinvested for 10 more years at same rate

$57,951

+$42,951

Compounding the result at your achieved rate.

Recommended actions(2)

Plan the tax bill before withdrawing

Medium priority

Capital gains tax is owed in the year of sale. Set aside the estimated tax now so it doesn't surprise you in April.

Document the decision rationale

Quick win

Track WHY you bought, your thesis, and your exit criteria for future investments. The biggest predictor of investor success is repeatability, not lucky single wins.

Start Investing Today

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This tool is for educational purposes only and does not constitute financial, tax, or investment advice. Consult a qualified financial professional for advice specific to your situation.