Initial 1000; final 1100; income 50; fees 10; 12 months
Net profit 140; ROI 14%; annualized 14%Net receipts are 1140. The 140 gain is 14% of the initial 1000, and a 12-month period needs no annual adjustment.
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Compare an investment’s final value with what you originally paid. Add income such as dividends and subtract fees to separate net profit from percentage return. Annualization expresses the same end-to-end change as a constant yearly rate; it does not predict future performance.
Net receipts are 1140. The 140 gain is 14% of the initial 1000, and a 12-month period needs no annual adjustment.