ROI Calculator
Measure gain or loss relative to what you invested. Enter the initial amount and final value for ROI as a percentage, and add a holding period to see the annualized return.
Calculate
ROI
The formula
ROI = (total return − total invested) ÷ total invested × 100. Total invested can include fees; total return can include income. With a holding period, annualized return compounds that growth over the years held.
Worked example
- Initial $10,000; final value $12,500 → profit $2,500
- ROI = $2,500 ÷ $10,000 × 100 = 25%
- Over 5 years: annualized ≈ (1.25)^(1/5) − 1 ≈ 4.56%/yr
Result: ROI +25% · profit $2,500
How ROI is calculated
Simple ROI answers “how much did I gain relative to what I put in?” Annualizing lets you compare holds of different lengths.
Invested vs return
Total invested is the initial outlay plus optional extra costs (fees, taxes to enter). Total return is the final value plus optional income (dividends, rent). Profit is return minus invested.
Annualized return
When you enter a holding period greater than zero, we compute the constant yearly rate that compounds to the same growth multiple: (total return ÷ total invested)^(1 ÷ years) − 1.
What we do not model
No mid-period cash-flow timing, reinvestment schedules, leverage, or risk-adjusted metrics. Pair ROI with risk and liquidity when you decide.
Interesting facts
Used everywhere
ROI is the standard ratio for comparing investments of different sizes: gain (or loss) relative to what you put in.
Time frame matters
A 50% ROI in one month is not the same as 50% in five years. Add a holding period here to annualize.
Include costs consistently
If fees go into invested cost, exit costs should reduce final proceeds — or label paper mark-to-market clearly.
Risk is invisible in the %
Two projects can share an expected ROI while one is far more volatile.
Growth multiple
x1.25 means every dollar invested became $1.25 — another way to read the same result as +25% ROI.
Frequently asked questions
It depends on asset class, risk, and holding period. Compare to a relevant benchmark and state the time window.
Profit is the absolute gain. ROI scales that gain by what you invested so deals of different sizes are comparable.
Yes. If total return is below total invested, profit and ROI are negative — a loss relative to what you put in.
Enter years or months held. We use (total return ÷ total invested)^(1 ÷ years) − 1 for the constant yearly rate equivalent to your growth.
Use Extra costs for fees that increase what you invested, and Income received for dividends or rent that add to return.
References
- Investor.gov — Getting started Plain-language investing basics from the U.S. securities regulator.
- Compound interest For growth projections with regular deposits.