ROI Calculator
Free ROI calculator. Measure your return on investment as a percentage, see net profit, and find the annualized return over your holding period.
Investment Details
Return on Investment
20%
Breakdown
How It Works
Enter the amount invested
Type the initial cost or amount of money you put into the investment.
Enter the final value
Add the total amount returned or the current value of the investment.
Add the holding period
Optionally enter how many years you held the investment to see the annualized ROI.
Return on investment (ROI) is the most widely used measure of an investment's profitability. By comparing the profit you made against the amount you put in, ROI gives a single percentage that lets you judge how well your money worked — whether for stocks, real estate, a business project or a marketing campaign.
This calculator shows both the total ROI and, when you provide a holding period, the annualized ROI — the steady yearly rate that would have produced the same result. The annualized figure is essential for comparing investments held over different time spans, since a large total gain earned slowly may be worse than a smaller one earned quickly.
Frequently Asked Questions
How is ROI calculated?
Return on investment is the net profit divided by the amount invested, expressed as a percentage: ROI = (final value − initial investment) / initial investment × 100. Turning a $1,000 investment into $1,200 is a $200 profit and a 20% ROI.
What is annualized ROI and why does it matter?
Total ROI ignores time, so a 50% return over ten years looks better than it is. Annualized ROI converts the total return into an equivalent yearly rate using (final / initial)^(1/years) − 1, letting you compare investments held for different lengths of time on equal footing.
Can ROI be negative?
Yes. If the final value is less than the amount invested, the net profit is negative and the ROI is below 0%, indicating a loss on the investment.
Does this ROI calculation include fees or taxes?
No. The calculator works from the raw amounts you enter. For a true picture, subtract any fees, commissions and taxes from your final value, and include all costs in the amount invested before entering the figures.
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