Finance

Investment Return on Investment Calculator (5 Years)

Calculate return on investment as a percentage. This investment version uses a 5-year planning term as its starting point.

Interpretation: the Return figure is the total gain or loss on the amount invested, expressed as a percentage of that amount, so a positive Return means the final value is higher than the amount invested and a negative Return means money was lost; it is a total over the whole period covered by this page, not a yearly rate, so a large-looking total earned over only 5 years is a strong result in real terms, but it still needs to be weighed against fees, taxes, and the risk taken.

Formula

Return equals final value minus invested amount, divided by invested amount, times 100.

How it works

A positive return means the final value is higher than the amount invested.

Worked example

Amount invested $10,000, final value $15,000, term 5 years. Using the page formula, return equals $15,000 minus $10,000, divided by $10,000, times 100, which is $5,000 divided by $10,000, times 100, which is 50.00%. That is the calculator's own result for these defaults, and it is the same on every page in this group because the term is not an input.

That 50.00% is a total over the whole term, not a yearly rate. As illustrations only, not outputs of this page, the simple average is 50 divided by 5, which is 10.00% a year, and the steady rate that would compound $10,000 to $15,000 over 5 years is 8.45% a year. The steady rate is lower because compounding builds on itself each year.

Who this term suits for an investor: an investor checking a short, active play, for example a stock position, a small business stake, or a property bought and resold within about 5 years, where a 50% total gain in a short time is a strong result that still needs to be checked against fees, taxes, and the risk taken.

FAQs

What is a good ROI?
There is no single good figure. Compare returns over the same period and with the same risk before deciding.

Is this investment calculator exact?
No, it is an estimate for planning only, based on the numbers you enter.

Are these figures financial advice?
No, they are estimates for planning only, not financial advice. Check with a qualified adviser for decisions involving large sums.

Is 50% a good return on an investment over only 5 years?
It is a strong total for 5 years, equal to about 8.45% a year compounded, but judge it against the risk taken, the fees paid, and what a safer investment would have returned over the same 5 years.

Should an investor sell after a 50% gain in 5 years?
Not automatically. Check whether the investment still has room to grow, what tax or fees a sale would trigger, and whether the money has a better place to go before selling on the gain alone.

What does this 5-year return leave out?
It leaves out fees, taxes, inflation, and any money added or withdrawn during the term. A 50% headline can look very different once those are counted.

Estimates only, not financial advice. Figures are approximate and do not include all fees, taxes, or changing rates unless stated.