ROI Calculator
Work out the return on an investment from what you put in and what it is worth now: the profit or loss, the ROI percentage and, if you add how long you held it, the equivalent yearly rate.
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What it is worth now, or what you received.
For the yearly (annualised) rate.
How do I calculate return on investment?
ROI is the profit divided by the amount invested, times 100. Investing 1,000 and ending with 1,250 is a profit of 250, so the ROI is 250 ÷ 1,000 × 100 = 25%. Add how long you held it to see the yearly rate: 25% over two years is about 11.8% a year, not 12.5%.
- Enter the amount you invested, including any purchase costs you want to count.
- Enter the final value: what the investment is worth now, or what you received when you sold it.
- Read the profit or loss and the ROI. Optionally add the holding period in years or months to see the annualised ROI.
Formulas & Methods
Profit or loss
Example: 1,250 − 1,000 = 250
ROI
Example: 250 ÷ 1,000 × 100 = 25%
Annualised ROI
Example: 1.25^(1 ÷ 2) − 1 = 11.80% a year
Key features
Gain, loss or break-even
The result is labelled in words, not only by colour, and a loss is shown as a loss rather than a negative profit.
Annualised rate
Turns a return over any period into the equivalent yearly growth, so investments held for different lengths of time can be compared.
Growth multiple
Shows how many times the money grew: 1.25× means every 1 became 1.25.
Common uses
- Compare two investments held for different lengths of time
- See what a marketing campaign returned for what it cost
Why ROI over several years isn’t simply divided by the years
A 25% return over two years is not 12.5% a year, because growth compounds: 11.8% in the first year turns 1,000 into 1,118, and 11.8% more in the second year turns that into 1,250. The annualised ROI is the constant yearly rate that gives the same end result, the same idea as a compound annual growth rate (CAGR).
For periods shorter than a year the annualised figure can look very large, because it assumes the same growth would continue all year. Treat it as a way to compare, not as a forecast.
What simple ROI leaves out
ROI compares only the start and end values. It doesn’t account for money added or taken out along the way, dividends or rent received in between unless you include them in the final value, taxes, inflation or risk. For investments with regular deposits, the Compound Interest Calculator shows growth month by month. The result is arithmetic on the figures you enter, not financial advice.
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Frequently Asked Questions
What counts as a good ROI?
It depends on the time and the risk. A return is only meaningful next to the period it took and the alternatives: compare the annualised ROI with what a savings account or an index fund would have paid over the same time.
Should fees and costs be included?
Yes, if you want the real return. Add purchase fees and other costs to the amount invested, and subtract selling fees from the final value, so the ROI reflects what you actually gained.
Can ROI be negative?
Yes. If the final value is below the amount invested, the ROI is negative: 1,000 falling to 800 is a loss of 200, or −20%. The lowest possible ROI is −100%, when the investment is worth nothing.
Is ROI the same as profit margin?
No. ROI divides the profit by what was invested; profit margin divides the profit by the selling price. The same 250 profit on a 1,250 sale is a 25% ROI on 1,000 invested but a 20% margin.
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