ROI Calculator
Measure a simple return: profit divided by what you put in.
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Optional, used for annualized ROI.
About this calculator
Return on investment compares net gain with the amount invested. Annualized ROI adjusts that result for the number of years the money was invested, which makes different time periods easier to compare.
How to calculate
Enter the amount invested and the current or final value. Add years held to also see an annualized return.
ROI = (Final − Cost) / Cost × 100
Annualized ROI = (1 + ROI)¹⁄ʸᵉᵃʳˢ − 1
When to use it
- Comparing two completed projects
- A first look before more detailed finance math
Examples
$1,000 grows to $1,300 in 3 years
ROI is 30%. Annualized ROI is about 9.14%.
ROI on a $1,000 cost
| Final value | Profit | ROI |
|---|---|---|
| $1,100 | $100 | 10% |
| $1,250 | $250 | 25% |
| $800 | −$200 | −20% |
FAQ
Is ROI the same as profit margin?
No. ROI is typically used for investments. Profit margin is used for sales relative to revenue.
What if the investment loses money?
ROI will be negative. Annualized ROI is still shown when the holding period is greater than zero.