Calculate the return on investment percentage, annualized ROI, and net profit.
Return on Investment (ROI) measures the profitability of an investment as a percentage. It tells you how much you earned (or lost) relative to what you put in. ROI is one of the most widely used financial metrics for comparing investment options.
Simple ROI shows total return regardless of time. A 50% return over 5 years isn't the same as 50% over 1 year. Annualized ROI normalizes returns to a yearly basis, making it easy to compare investments of different durations.