ROI (Return on Investment) Calculator

Measure how much an investment returned in total and per year, so you can compare opportunities fairly.

Quick answer

An ROI calculator measures an investment's gain as a percentage of what you put in, plus the annualized return. Turning $1,000 into $1,500 is a 50% ROI; over three years that is about 14.47% a year. Use the annualized figure to compare investments held for different lengths of time.

$
$
yrs
Return on investment
45.00%
Net gain
$4,500
Annualized return
13.19%
Turning $10,000 into $14,500 is a gain of $4,500, or 45.0% ROI. Spread over 3 years, that works out to 13.19% per year — the fairer number for comparing investments held for different lengths of time.

Key takeaways

  • ROI = (final − initial) ÷ initial.
  • Annualized ROI makes different time periods comparable.
  • Include fees and costs in the amount invested.
Annualized return — The constant yearly rate that produces the same total return over the holding period.

How the roi calculator works

ROI expresses profit as a percentage of what you put in. Because a 50% return over 10 years is very different from 50% in one year, we also give the annualized rate.

Formula

ROI = (final − initial) ÷ initial Annualized ROI = (final ÷ initial)^(1/years) − 1

Standard formula. Further reading: Investopedia – Return on investment (ROI)

Worked example

Invest $1,000 and get back $1,500: ROI = 500 ÷ 1,000 = 50%. Over 3 years that is 1.5^(1/3) − 1 = 14.47% per year.

Change any number above and the plain-English explanation updates instantly with your own figures.

Frequently asked questions

What is a good ROI?

It depends on risk. Broad stock market returns of 7–10% a year are a common benchmark.

ROI vs CAGR?

Annualized ROI and CAGR are the same calculation; total ROI ignores time.

Should I include costs?

Yes. Add fees, commissions and other costs to the initial amount for an accurate ROI.

Can ROI be negative?

Yes, if the final value is less than you invested.

Embed this calculator

Add this free calculator to your website or blog. Copy the code below:

Need a branded, white-label version for your business? Contact us.

Remove branding → Pro. Your colours, no "Powered by" link, from $7.50/mo.See plans

Results are estimates for educational purposes and are not financial advice.

Written and reviewed by Muhammad Asif, founder of CalcPane · Formulas verified by automated tests · Updated