ROI Calculator
This ROI calculator turns two numbers, what you put in and what it is worth now, into your total return on investment as a percentage, plus the net profit. Add how many years you held it and it also shows the annualized ROI. Results update on every keystroke, and nothing you type is uploaded or saved.
How to Calculate ROI With This Calculator
- Type the total you put in at the start under Initial investment.
- Type what it is worth now under Final value. Include any income it paid, such as rent, dividends or sales revenue.
- Read Total ROI in the large result and Net profit in the pill below it. Green means a gain, red means a loss.
- Optional: select Show advanced and enter the Investment duration (years) to see Annualized ROI. Select Hide advanced to tuck it away again.
The calculator has no currency symbol, so use whichever currency you like, as long as both amounts use the
same one. A decimal comma works too: 1,5 is read as 1.5.
Final value: 12,500
Investment duration (years): 3
Net profit = 12,500 − 10,000 = 2,500.00
Total ROI = 2,500 ÷ 10,000 × 100 = 25.00%
Annualized ROI = (12,500 ÷ 10,000) ^ (1/3) − 1 = 7.72%
The ROI Formula
ROI = (Final value − Initial investment) ÷ Initial investment × 100. The part in brackets is the net profit. Dividing it by the initial investment says how much you earned for every unit you put in, and multiplying by 100 turns that into a percentage. A result of 25% means each 100 invested became 125.
Annualized ROI: Spreading the Return Over the Years
Total ROI says nothing about time. A 25% gain in one year and a 25% gain in five years have the same total ROI but are very different results. Annualized ROI = ((Final value ÷ Initial investment) ^ (1 ÷ Years) − 1) × 100 converts the total into the steady yearly rate that would produce it with compounding. The same 25% total is 25.00% a year over one year and about 4.56% a year over five.
If you only care about the yearly rate between a start and an end value, the CAGR Calculator works it out in years or months. To see how regular growth compounds forward, try the Compound Interest Calculator, and to take inflation into account, the Real Return Calculator.
Reading a Negative ROI
When the final value is lower than the initial investment, Total ROI and Net profit show a minus sign and turn red. If an investment of 8,000 ends at 6,000, Net profit is −2,000.00 and Total ROI is −25.00%. A final value of 0 is a total loss of −100.00%.
When You See N/A
- Total ROI shows N/A when the Initial investment is zero or less. A percentage cannot be measured from a starting cost of nothing, so the tool says so under the field. Net profit still shows.
- Annualized ROI shows N/A when the duration is under one day, or when the Final value is negative.
This is arithmetic on the numbers you enter, not investment advice. ROI does not account for fees, taxes, inflation or the risk you took, and it treats everything as one amount in and one value out.
Frequently Asked Questions
How do you calculate ROI percentage?
Subtract the initial investment from the final value to get the net profit, divide that by the initial investment, then multiply by 100. For example, 10,000 grown to 12,500 is a net profit of 2,500, and 2,500 ÷ 10,000 × 100 = 25% ROI. The calculator does these steps as you type.
What is the ROI formula?
ROI = (Final value − Initial investment) ÷ Initial investment × 100. The top half is the net profit, the bottom half is what you put in, and the result is a percentage. To spread the result over time, the annualized version is ((Final value ÷ Initial investment) ^ (1 ÷ Years) − 1) × 100.
What is annualized ROI?
Annualized ROI is the single yearly rate that would grow the initial investment into the final value over the years you held it, compounding each year. Open Show advanced, type the Investment duration (years), and the Annualized ROI pill appears next to Net profit. A 25% total ROI over 3 years is about 7.72% a year; over 5 years it is about 4.56% a year.
What is the difference between ROI and CAGR?
Total ROI ignores time: it only compares the end with the start. CAGR, the compound annual growth rate, is the same calculation spread over the years held, so it is what this page calls Annualized ROI. For a lump sum with no deposits or withdrawals in between, the two give the same yearly figure.
What does a negative ROI mean?
A negative ROI means the final value is below the initial investment, so you lost money. Total ROI and Net profit turn red, for example 8,000 falling to 6,000 shows −25.00% and −2,000.00. A final value of 0 is a total loss and shows −100.00%.
Can I use this ROI calculator for stocks, rental property or a business?
Yes, as long as you can boil it down to one amount in and one value out. Put everything you paid in Initial investment, including purchase costs, and everything it is worth now, plus any income it paid, in Final value. The tool does not model monthly cash flows, loan interest or fees, and it is not investment advice.
Why does the ROI calculator show N/A?
Total ROI shows N/A when the Initial investment is zero or less, because a percentage cannot be measured from a starting cost of nothing; Net profit still shows. Annualized ROI shows N/A when the duration is shorter than one day or the Final value is negative.
Recommended
-
Casio MS-80B Desktop CalculatorDouble-check the profit math on a sale or ad spend with big, easy keys.
-
HP 10bII+ Financial CalculatorRuns IRR, NPV and payback on your investment, so the return gets a deeper check.
-
Leuchtturm1917 Dotted Notebook (A5)Keep a page per deal: what went in, what it is worth now, what you learned.
Helps keep the tools free. ✨
Images are for illustration only. As an Amazon Associate I earn from qualifying purchases.
