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ROI Calculator

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About ROI Calculator

Our free ROI calculator helps you measure the profitability of any investment. Return on Investment (ROI) is one of the most widely used financial metrics for evaluating investment performance. Whether you are analyzing stock returns, real estate investments, business ventures, or any other asset, this calculator gives you instant clarity on your investment gains or losses.

Features

What is ROI and How Is It Calculated?

ROI (Return on Investment) measures the gain or loss generated by an investment relative to its cost. The formula is: ROI = (Final Value - Investment Amount) / Investment Amount x 100. For example, if you invest $10,000 and it grows to $15,000, your ROI is 50%. However, ROI does not account for time. That is where annualized return comes in: Annualized Return = (1 + ROI/100)^(1/years) - 1. A 50% ROI over 3 years equals about 14.5% annualized, while 50% over 1 year is 50% annualized. Annualized returns allow you to fairly compare investments held for different periods.

ROI Calculator FAQ

How do I calculate ROI?

ROI = (Net Profit / Initial Investment) × 100. For example, if you invest $1,000 and end with $1,200, your ROI is ($200/$1,000) × 100 = 20%. Our calculator also shows annualized ROI for multi-year investments.

What is a good ROI?

A "good" ROI depends on the investment type. Stock market averages about 10% annually. Real estate might return 8-12%. A business investment often targets 15-30%. Always compare against similar investments.

What is the difference between ROI and annualized ROI?

Simple ROI shows total return regardless of time. Annualized ROI factors in the time period, letting you compare investments of different durations. A 50% return over 5 years annualizes to about 8.4% per year.

What costs should I include in my ROI calculation?

Include all costs: purchase price, transaction fees, taxes, maintenance, and any ongoing expenses. A complete ROI calculation gives the most accurate picture of your actual investment performance.