What this calculator helps you do
Measure profit relative to total invested capital and estimate an annualized rate over the entered period. The calculation runs entirely in your browser; SENNA Finance does not receive the values entered into this tool.
Worked example
Using the default example—initial investment of $10,000, additional costs of $1,000, ending value of $14,500, income received of $800, holding period of 3 years—the calculator returns total roi of 39.09%; net profit: $4,300.00; annualized roi: 11.63%. Change the assumptions to match your own case rather than relying on the example.
Formula and calculation basis
Inputs are converted to the periodic units required by the formula. Results are calculated with full JavaScript numeric precision and rounded only for display.
How to interpret the result
Total ROI shows overall gain; annualized ROI expresses a smoothed yearly equivalent. Neither metric alone measures risk.
Common mistakes to avoid
- Leaving additional investment out of the denominator.
- Ignoring income distributions or fees.
- Comparing a short high-risk result with a long low-risk result using ROI alone.
Limits and assumptions
Annualization assumes a compounded equivalent path and positive ending value plus income.
Outputs are estimates, not contractual quotations, regulated disclosures, tax advice, investment advice, or a substitute for professional review.
Frequently asked questions
What is included in net profit?
Ending value plus entered income minus initial and additional investment.
Is ROI the same as IRR?
No. IRR accounts for the timing of multiple cash flows; simple ROI does not.
Can ROI be negative?
Yes, when ending value plus income is below the amount invested.
Sources and reference context
External references provide educational context and do not imply endorsement of SENNA Finance.