ROI Calculator

Calculate return on investment with percentage gain or loss, annualized ROI, and total profit for any investment.

ROI Calculator tool

Loading...

Example

Input: $10,000 initial investment, final value $15,000 after 3 years

Result: ROI 50.00%, Annualized ROI 14.47%, Net Profit $5,000.00

ROI = 5,000 / 10,000 = 50%; annualized = 1.5^(1/3) - 1 = 14.47% per year.

Total ROI vs Annualized ROI

Years Held50% Total ROI100% Total ROI
150.00% a year100.00% a year
222.47% a year41.42% a year
314.47% a year25.99% a year
58.45% a year14.87% a year
104.14% a year7.18% a year
202.05% a year3.53% a year

The same total gain spread over more years means a lower yearly return.

  1. Enter the initial investment amount.
  2. Enter the final value or total returns of the investment.
  3. Enter the investment duration in years to calculate the annualized ROI.
  4. View the ROI percentage, net profit, and annualized return.
  5. Click the copy button to copy the ROI result.

What ROI Tells You About an Investment

ROI (return on investment) measures how much you gained or lost compared with what you put in. Turn $10,000 into $15,000 and your ROI is 50%. If that took 3 years, the annualized ROI is 14.47% a year. This tool shows both, plus the net profit or loss.

Enter the amount you invested, what it is worth now, and how many years you held it. ROI is (final value - investment) / investment x 100. Annualized ROI converts the total into a steady yearly rate, as if the gain compounded evenly each year. A loss shows as a negative percentage. Annualized ROI is what makes different investments comparable. A 50% gain sounds strong, but it means very different things over 1 year and over 10. The table below shows how the same total return shrinks per year as the holding period grows.

ROI has limits. It ignores risk, so two investments with the same ROI can be very different bets. It also leaves out anything you do not enter, such as fees, taxes, dividends or the money you added along the way. Put those in the final value or the starting cost if you want them counted. Inflation also eats into gains. The Inflation Calculator shows how much. To project growth forward instead of measuring the past, use the Compound Interest Calculator.

Formula / How It Works

ROI = ((Final Value - Initial Investment) / Initial Investment) x 100. Annualized ROI = ((Final Value / Initial Investment)^(1/years) - 1) x 100.

Frequently Asked Questions

ROI = (final value - initial investment) / initial investment x 100. If you invest $1,000 and it grows to $1,250, ROI = 250 / 1,000 x 100 = 25%. If the value drops to $800, ROI is -20%. Include costs such as fees in the initial investment for a truer figure.
ROI is the total gain over the whole period. Annualized ROI spreads that gain into an equal yearly rate with compounding. A 50% total return over 3 years equals about 14.47% a year. Use the annualized figure to compare investments held for different lengths of time.
There is no single answer, because it depends on risk and time. A useful test is to compare your annualized ROI with a low-risk option, such as a savings account or government bonds, over the same period. A riskier investment should aim to beat that by a clear margin. A financial adviser can help you weigh a specific choice.
Because gains compound. A 100% total gain over 10 years is not 10% a year. It is about 7.18% a year, since each year builds on the last. Dividing the total ROI by the years overstates the yearly return, and the gap grows with longer periods.

Related Tools

Compound Interest Calculator

Calculate compound interest with visual chart showing growth over time. Supports various compounding frequencies.

Finance and Business

Profit Margin Calculator

Calculate gross, operating, and net profit margins from revenue and costs. Essential for business analysis.

Finance and Business

Break-Even Calculator

Calculate the break-even point for your business. Find how many units or revenue needed to cover all costs.

Finance and Business

Retirement Savings Calculator

Project retirement fund growth with monthly contributions, employer match, and compound interest chart.

Finance and Business

Inflation Calculator

Calculate purchasing power change over time using US CPI data from 1913 onward, with a year-by-year value chart.

Finance and Business

Markup vs Margin Calculator

Enter cost and selling price to see markup and margin percentages side by side, plus the profit per unit.

Finance and Business