ROI Calculator
Use this ROI calculator to enter an initial investment and its final value, then find the return on investment percentage, net profit, and annualized return online.
ROI Calculator
Enter values above to see results
About This ROI Calculator
This ROI calculator helps you measure how well an investment performed by comparing what you put in with what it is worth now. Enter the initial investment and final value to get the return on investment percentage and net profit, and add a holding period to see the equivalent annualized return.
It is useful for business projects, stocks, property, marketing spend, and any decision where you want to know how much a sum of money grew or shrank. The result depends only on the values you enter.
What Is ROI?
ROI stands for return on investment. It expresses profit as a percentage of the amount invested, which makes investments of different sizes easy to compare. A positive ROI is a gain, and a negative ROI is a loss.
ROI Formula
The standard formula is:
ROI = (Final Value − Initial Investment) ÷ Initial Investment × 100
First subtract the initial investment from the final value to get the net profit. Then divide by the initial investment and multiply by 100 to express it as a percentage.
How to Use the Calculator
- Enter the initial investment — the amount you put in.
- Enter the final value — what it is worth now, or what came back out.
- Optionally, enter the investment period in years for an annualized result.
- Click calculate.
- Review the ROI percentage, net profit, and annualized return.
ROI Calculation Example
Suppose you invest 1,000 and it grows to 1,500.
Net profit = 1,500 − 1,000 = 500
ROI = 500 ÷ 1,000 × 100 = 50%
So the return on investment is 50%. If that growth happened over 3 years, the annualized ROI is about 14.47% per year.
What Is Annualized ROI?
Annualized ROI restates the total return as an equivalent compound rate per year. It is calculated as:
Annualized ROI = ((Final Value ÷ Initial Investment)^(1 ÷ Years) − 1) × 100
This matters because a 50% return in one year is far better than a 50% return over ten years. Annualizing puts investments held for different lengths of time on the same footing.
What Is a Good ROI?
There is no single answer, because it depends on the risk, the time involved, and the type of investment. A higher ROI is generally better, but a high return that took many years or carried heavy risk may be less attractive than a smaller, faster, safer one. Use the annualized figure to compare fairly.
Does ROI Include Fees and Taxes?
This calculator uses only the initial investment and final value you enter. To account for fees, commissions, or taxes, subtract them from the final value before entering it, so the result reflects your true net position.
When Should You Use This Tool?
- Comparing investment options
- Reviewing business or project returns
- Checking marketing or advertising spend
- Measuring stock or property gains
- Evaluating a past decision
Related Calculators
You may also find these tools useful:
- Percentage Calculator
- Compound Interest Calculatorcoming soon
- Interest Calculatorcoming soon
- Profit Margin Calculatorcoming soon
- Investment Calculatorcoming soon
Start Calculating
Enter your initial investment and final value above and use the ROI calculator to find your return. Add the holding period for an annualized rate before comparing investments.
Frequently Asked Questions
What does this ROI calculator do?
It measures the return on an investment as a percentage of the amount invested, and also shows the net profit and, when you enter a holding period, the annualized return.
What is the ROI formula?
ROI equals the final value minus the initial investment, divided by the initial investment, multiplied by 100. A positive result is a gain and a negative result is a loss.
What is a good ROI?
It depends on the investment, the risk, and the time involved. A higher ROI is generally better, but a large return over ten years is very different from the same return in one year, which is why annualized ROI is useful for comparison.
Can ROI be negative?
Yes. When the final value is less than the initial investment, the ROI is negative, which represents a loss.
What is annualized ROI?
Annualized ROI restates the total return as an equivalent compound rate per year. It lets you compare investments held for different lengths of time on the same footing.
Does this ROI include fees or taxes?
No. The result is based only on the initial investment and final value you enter. To account for fees, commissions, or taxes, subtract them from the final value first.