ROI Calculator
Measure how well an investment performed. Enter what you put in and what it's now worth, and the calculator shows your return on investment (ROI) as a percentage, your net profit, and — if you add a holding period — your annualized ROI, which makes returns over different time spans comparable.
Return on investment
+30%
How to Use
Enter the amount you invested and the final value. The ROI percentage and your net profit (or loss) appear instantly. Add the holding period in years to also get the annualized ROI — the equivalent yearly rate of return — which is the fairer way to compare investments held for different lengths of time.
Why This Tool Is Useful
ROI is the simplest way to judge whether something was worth it — an investment, a marketing campaign, a rental property, a business project. But a raw ROI ignores time: 50% over ten years is very different from 50% in one year. The annualized figure fixes that, so you can compare opportunities on an even footing. It works for stocks, real estate, side projects, and ad spend alike.
What Is ROI?
Return on investment (ROI) measures the gain or loss on an investment relative to its cost, as a percentage. The formula is simple: ROI = (final value − cost) ÷ cost × 100. A $1,000 investment now worth $1,200 has a $200 gain and a 20% ROI.
ROI is popular because it's intuitive and works for almost anything you can assign a cost and a return to.
Why Annualized ROI Matters
Plain ROI ignores how long it took to earn. Earning 50% in one year is far better than 50% over five years, but both show a 50% ROI. Annualized ROI converts the total return into an equivalent yearly rate, using the formula (final ÷ cost)^(1 ÷ years) − 1.
Always compare investments by annualized ROI when the holding periods differ — it's the number that reflects how hard your money actually worked per year.
ROI vs Other Metrics
ROI is a snapshot of total return, but it doesn't account for the timing of multiple cash flows or risk. For investments with several deposits and withdrawals, IRR (internal rate of return) is more precise. For comparing steady growth, the annualized figure here is usually enough — and far easier to calculate.
What Counts as a Good ROI?
It depends on the asset and the risk. As a reference point, the stock market has historically returned roughly 7–10% per year on average over the long run, so a sustained annualized ROI above that is strong. Higher returns generally come with higher risk, and a positive ROI still isn't 'good' if a safer option would have returned more.
ROI Examples
| Invested | Final value | Total ROI | Annualized |
|---|---|---|---|
| $1,000 | $1,200 | +20% | +9.5%/yr (2 yrs) |
| $5,000 | $7,500 | +50% | +14.5%/yr (3 yrs) |
| $2,000 | $2,000 | 0% | Break-even |
| $10,000 | $9,000 | −10% | Loss |