ROI Calculator
Measure the return on an investment as a total and annualized percentage.
Formula
About this calculator
An ROI calculator measures how much money an investment made relative to what you put in, expressed as a percentage. Return on investment is the most widely used yardstick in business and personal finance precisely because it's simple and universal: it lets you compare a stock purchase, a marketing campaign, a property or an equipment upgrade on the same basis — profit as a share of cost.
The core calculation is your net profit — final value minus the amount invested — divided by the amount invested. Put in 10,000 dollars and end with 13,000 and your total ROI is 30 percent. This headline figure is easy to grasp, but it has one important blind spot: it ignores time. A 30 percent return earned in one year is far better than the same 30 percent earned over ten.
That's why the calculator also reports annualized ROI, which converts the total return into an equivalent steady yearly rate using the holding period you enter. Annualizing is what makes returns genuinely comparable — a two-year investment and a five-year one can only be judged fairly once both are expressed per year. For most decisions, the annualized figure is the one that matters.
ROI works for losses as well as gains; a final value below your investment simply produces a negative percentage. Keep in mind that this basic measure doesn't account for interim cash flows, taxes or risk, so treat it as a clear first comparison rather than a complete appraisal of an investment's quality.
Frequently asked questions
How do you calculate ROI?
Subtract the amount invested from the final value to get net profit, divide by the amount invested and multiply by 100. A $3,000 profit on $10,000 invested is a 30% ROI.
What is annualized ROI?
It converts your total return into an equivalent steady annual rate over the holding period, so investments held for different lengths of time can be compared on an equal footing.
What is a good ROI?
It depends on the investment type and its risk. Broad stock market returns average roughly 7–10% a year historically; higher-risk ventures need higher returns to justify the risk.
Does ROI account for time or taxes?
Basic ROI ignores both. The annualized figure factors in time, but neither version accounts for taxes, fees or interim cash flows — treat ROI as a first comparison, not a full appraisal.
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⚠️ ROI is calculated from the figures you enter and is a simplified measure for comparison, not financial advice. It excludes taxes, fees and risk considerations.