Finance

Personal Return on Investment Calculator (5 Years)

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

The Return figure is the total gain or loss over the full 5 years, shown as a percentage of the amount invested. A positive Return means the final value is higher than the amount invested, a negative Return means it is lower, and a Return of 0.00% means the money came back unchanged. Because it covers the whole 5 years, it is not a yearly rate, so compare it only with returns measured over the same length of time and with similar risk.

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. First, the gain is $15,000 minus $10,000, which is $5,000. Using the page formula, return is $5,000 divided by $10,000, times 100, which is 50.00%. That is the total return over the whole 5 years, not a yearly rate. As an illustration only, not the output of this page, the annualised rate behind the same result is about 8.45% a year, because $15,000 divided by $10,000 is 1.50, and the 5th root of 1.50 is about 1.0845. A 50.00% total over only 5 years is a strong headline, but it must still be compared with the risk taken and with any fees or tax, which this page does not include.

Who this term suits for a person: A 5-year term suits a person judging one clear holding, for example shares or a fund bought 5 years ago, or money set aside for a house-deposit top-up. The question is practical: is 50.00% over 5 years, about 8.45% a year, worth the ups and downs lived through, and is now the right time to sell, hold, or move the money to a safer place?

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 personal 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 50.00% over 5 years a good return for a person?
It can be a strong result, but only in context. About 8.45% a year over 5 years beats leaving money idle, yet a high-risk holding that swung wildly to get there is not the same as a steady one. Compare returns over the same 5 years and at the same risk, and remember this page does not deduct fees or tax.

What does 50.00% over 5 years mean a year?
It means about 8.45% a year on a compound view: $15,000 divided by $10,000 is 1.50, and the 5th root of 1.50 is about 1.0845. That yearly figure is an illustration only, because this page reports total return only. Use it to compare a 5-year holding fairly with a holding kept for a different number of years.

Should I sell after 5 years just because ROI hit 50%?
No, a round number is not a sell signal. Ask whether the reason you bought still holds, whether the risk has changed, and what the money would do next after fees and tax. Selling only to lock in 50.00% can leave the money earning less afterwards, and buying back later can cost more.

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