ROI Calculator

Calculate your return on investment instantly. Compare investments and make smarter financial decisions.

Initial Investment ($)

Final Value ($)

Investment Duration (Years) — optional for annualized ROI

Results

ROI

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Net Profit / Loss

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Annualized ROI

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Compare Investments

Name	Initial ($)	Final ($)	Years	ROI

What Is ROI?

Return on Investment (ROI) is a financial metric used to evaluate the efficiency or profitability of an investment. It measures the amount of return relative to the investment's cost, expressed as a percentage.

ROI Formula

The basic ROI formula is:

ROI = ((Final Value − Initial Investment) / Initial Investment) × 100%

For annualized ROI over multiple years:

Annualized ROI = ((Final / Initial) ^ (1/Years) − 1) × 100%

How to Use This Calculator

Enter your Initial Investment — the amount you originally invested
Enter the Final Value — the current or expected value of your investment
Optionally enter the Duration in years to see the annualized return
Use the comparison table to evaluate multiple investments side by side

ROI Examples

Stock investment: Buy $5,000 of stock, sell for $7,500 → ROI = 50%
Real estate: Purchase property for $200,000, sell for $260,000 after 4 years → ROI = 30%, Annualized ≈ 6.78%
Business: Invest $10,000 in marketing, generate $25,000 revenue → ROI = 150%

Why ROI Matters

ROI helps you compare different investments on an equal footing. Whether you're evaluating stocks, real estate, business ventures, or marketing campaigns, ROI gives you a standardized metric to assess which opportunities deliver the best returns.

Frequently Asked Questions

What is a good ROI?

A "good" ROI depends on the investment type. For stocks, the S&P 500 averages about 10% annually. Real estate typically returns 8-12%. For business investments, many aim for 15-25% ROI or higher.

What's the difference between ROI and annualized ROI?

ROI shows the total return over the entire period. Annualized ROI normalizes this to a yearly rate, making it easier to compare investments of different durations. A 50% ROI over 5 years is very different from 50% over 1 year.

Can ROI be negative?

Yes. A negative ROI means you lost money on the investment. For example, investing $10,000 and ending with $8,000 gives an ROI of -20%.

Does this calculator account for fees and taxes?

This calculator shows the gross ROI based on initial and final values. To account for fees and taxes, subtract them from your final value before calculating. For example, if you sold for $15,000 but paid $500 in fees and $1,000 in taxes, use $13,500 as your final value.

Is my data safe?

Absolutely. All calculations happen in your browser using JavaScript. No data is sent to any server. Your financial information never leaves your device.