How we worked it out
Updated as you change the numbers.
- ROI = (returned − invested) ÷ invested = ($7,500.00 − $5,000.00) ÷ $5,000.00.
- Annualized ROI = (returned ÷ invested)^(1 ÷ years) − 1.
Method and assumptions
ROI is the gain as a share of the cost. It ignores how long the money was tied up, so the annualized figure, the compound yearly rate, is better for comparing investments.
Questions
What is the ROI of turning $5,000 into $7,500 over 3 years?
50% in total, or 14.47% a year.
Sources
Method and figures checked on . Every worked answer on this page is covered by an automated test. Found a mistake? Tell us.