ROI Calculator
What you will learn
Distinguish percentage return, dollar gain and additional contributions.
Try it on the maintained tool page
Open ROI Calculator (opens in a new tab)
Record the investment cost and outcome you are comparing. Identify the period and any fees, taxes or contributions that need separate treatment.
Keep this course tab open. Return here to answer the questions and continue to the next lesson.
Check your understanding
Answer each question, then open the explanation.
1. Can the same percentage return correspond to different dollar gains?
Show answer and why
Answer: Yes, when the amounts invested differ.
Why: The dollar outcome depends on the amount to which the percentage applies.
2. Should a contribution be counted as an investment gain?
Show answer and why
Answer: No. It is additional capital supplied by the investor.
Why: Otherwise added savings could be mistaken for stronger investment performance.
3. What should be checked before comparing return figures?
Show answer and why
Answer: The period, inputs and treatment of costs and cash flows.
Why: Different assumptions can create a difference without a difference in performance.
Key takeaways
- The dollar gain depends on both the percentage return and the amount invested.
- Additional contributions are capital supplied, rather than investment gains.
- Compare returns using compatible periods and treatment of costs and cash flows.
This course activity is for financial education. Check original sources and the tool’s stated assumptions before interpreting an output.
AI responses are for educational purposes. Always verify with official course materials.
This lesson teaches a concept. It is general education, not advice about your money. Before you act on anything you learn here, speak to someone licensed.
Sources and reference material
Primary sources and original reference material for the concepts discussed on this page.
- SEC Form N-1A, Item 26: Average annual total return methodology
- Investor.gov: Compound interest calculator and assumptions
- FINRA: Evaluating stocks and financial ratios
References added 14 October 2026.
AI responses are for educational purposes. Always verify with official course materials.
This lesson teaches a concept. It is general education, not advice about your money. Before you act on anything you learn here, speak to someone licensed.
This lesson teaches a concept. It is general education, not advice about your money. Before you act on anything you learn here, speak to someone licensed.
