Return on investment (ROI) is one of the most important metrics in finance. It’s the standard measure of investment performance, whether that means determining the return on stocks, mutual funds, or an asset used in a business. Because it’s such an important metric, we are providing this Return on Investment (ROI) Calculator to make that determination easy for you to calculate.

Understanding the Context

The Indianapolis Star: SlashData to Reveal New Data on Measuring AI ROI in Live Webinar on SlashData to Reveal New Data on Measuring AI ROI in Live Webinar on What is ROI? Discover more about return on investment interpretation with real-world ROI examples, calculation walkthroughs, & simple financial tips. What is the meaning of IRR? Our financial experts use internal rate of return examples to teach you how to calculate IRR with ease.

Key Insights

Total Dividends $1,255.09 Return on Investment 12.55% What does this mean in real numbers over time? $10,000 earning a 12% annual return compounded monthly will result in $33,003.87 after 10 years. If you compound it quarterly instead, the balance is $32,626.38 after 10 years. Quarterly vs Monthly Dividends: Which is Better? Monthly dividends provide a slightly better return over time due to ...

Final Thoughts

Annualize means to express a rate in terms of its annual equivalent. Annualizing returns makes it easier to compare them across time periods or companies. At the end of the year, you would earn $1,255.09 in compounded returns – or a +12.55% return on your investment (ROI) - on the initial $10,000. As you can see from the table below, your compounded returns are slightly better (13 basis points) from the monthly versus quarterly payout if you hold the stock for one year only.