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ROI Calculator

Calculate the return on investment (ROI) for any investment, project, or business decision. Enter your investment amount, the return, and the time period to see ROI percentage and annualized return.

The total amount you invested or spent.

The total value you received or the current value.

How long you held the investment.

How to Use

1 Enter the total amount you invested.
2 Enter the final value or amount returned.
3 Enter how many years you held the investment.
4 Click Calculate.
5 Review your ROI, net profit, and annualized return.

Formula

ROI ((Return − Investment) ÷ Investment) × 100
Net Profit Return − Investment
Annualized ROI ((1 + ROI/100)^(1/years) − 1) × 100

Example Calculation

If you invested $10,000 and it grew to $15,000 over 3 years:

Net Profit = $15,000 − $10,000 = $5,000
ROI = ($5,000 ÷ $10,000) × 100 = 50%
Annualized ROI = (1.5^(1/3) − 1) × 100 = 14.47%

Your investment returned 50% total, or about 14.47% per year.

Why It Matters

ROI is the universal metric for measuring the success of an investment. It tells you how much profit you made relative to what you put in. Annualized ROI lets you compare investments of different lengths on equal footing, making it essential for evaluating stocks, real estate, business projects, and marketing campaigns.

Who Uses This Calculator?

  • • People comparing loan, mortgage, salary, savings, tax, or investment scenarios before making a money decision.
  • • Homeowners, borrowers, employees, freelancers, and small business owners who need fast estimates without a spreadsheet.
  • • Anyone who wants to understand the inputs, formula, and tradeoffs behind a financial result.

Frequently Asked Questions

What is ROI?
ROI (Return on Investment) measures the profitability of an investment as a percentage. It is calculated by dividing the net profit by the cost of investment and multiplying by 100. A positive ROI means you made money; a negative ROI means you lost money. It is the most widely used metric in business and finance for comparing investments.
How to calculate ROI?
Subtract the investment cost from the final value to get the net profit. Then divide the net profit by the investment cost and multiply by 100. Formula: ROI = ((Return − Investment) ÷ Investment) × 100. For example, invest $10,000, get $13,000 back: ROI = (($13,000 − $10,000) ÷ $10,000) × 100 = 30%.
What is a good ROI?
It depends on the type of investment and risk level. Stock market average is about 7–10% per year. Real estate investors often target 8–12% annually. A new business might aim for 15–30% in the first few years. Marketing campaigns often target 200–500% ROI. Higher risk investments should deliver higher ROI to justify the risk.
What is the difference between ROI and profit?
Profit is the absolute dollar amount you earned (Return − Investment). ROI expresses that profit as a percentage of what you invested. Profit tells you how much money you made; ROI tells you how efficient the investment was. A $5,000 profit on a $10,000 investment (50% ROI) is much better than a $5,000 profit on a $100,000 investment (5% ROI).
What is annualized ROI?
Annualized ROI converts the total return into an equivalent yearly rate, accounting for compounding. This allows you to compare investments held for different time periods. A 50% ROI over 1 year is better than 50% over 5 years. The annualized ROI for 50% over 5 years is about 8.45% per year, while 50% over 1 year is simply 50% per year.

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This calculator provides estimates for informational purposes only and is not financial, tax, or legal advice. Consult a qualified professional before making financial decisions.