Calculate ROI, net profit, and annualized returns
ROI = ((Amount Returned - Amount Invested) / Amount Invested) × 100. This gives you the percentage return on your original investment.
The annualized ROI accounts for the time period, using the compound annual growth rate (CAGR) formula: ((Returned / Invested)^(1/years) - 1) × 100. This allows you to compare investments of different durations.
A positive ROI means you made money. A negative ROI means you lost money. Always compare annualized ROI to benchmark rates (like S&P 500's ~10% historical average) to evaluate whether your investment performed well.