ROI Calculator
This ROI calculator finds the return on investment from the amount invested and the amount returned. Enter both and, optionally, the years held, and the ROI calculator returns the ROI as a percentage, the net gain, and the annualized ROI, so you can compare investments held for different lengths of time.
Results
The ROI Calculator is part of our Investment collection. Browse more investment to size, convert, and check your work alongside this tool.
What the ROI calculator shows
Return on investment (ROI) measures how much an investment gained or lost relative to what it cost. The ROI calculator divides the net gain by the amount invested and shows it as a percentage. With the holding period, it also gives the annualized ROI, which is the fair way to compare a two-year investment with a five-year one. ROI is sometimes written as return over investment, but the meaning is the same: the return relative to the money put in.
ROI return on investment formula
ROI is a total figure; the annualized rate of return spreads it over the holding period with compounding.
ROI calculator example
You invest $10,000 and get back $15,000 after 3 years:
A 50 percent total return over 3 years is the same as earning about 14.47 percent every year.
How to use the ROI calculator
Enter the amount invested, the amount returned (sale value plus any income received), and optionally the years held. The ROI calculator returns the ROI percentage, the net gain, and the annualized ROI. Use it as an investment return calculator for stocks, property, equipment, or marketing spend.
Reading the rate of return calculator results
A positive ROI is a gain and a negative ROI a loss. Total ROI does not account for time, so always compare investments by annualized ROI when holding periods differ. ROI also ignores risk: a high return on a risky bet is not the same as a steady one.
When to use the investment ROI calculator
- Judging a stock or property sale with the investment ROI calculator
- Measuring marketing or equipment returns
- Comparing investments with an annual rate of return
- Reporting ROI analysis to a client or team
Common ROI calculator mistakes
- Comparing total ROI over different periods. Use annualized ROI.
- Leaving out fees and costs.
- Ignoring risk. Similar ROI does not mean similar risk.
Tips for accurate results
- Include income such as dividends or rent.
- Use the full holding period in years.
- Compare against a benchmark return.
Annual rate of return calculator: why time matters
Total ROI makes long holdings look better than they are. A 100 percent return over 5 years and a 50 percent return over 3 years look very different, yet the annualized rates are close: 14.87 percent and 14.47 percent. An annual rate of return calculator puts every investment on the same yearly footing. Businesses often confuse ROI with margin; the profit margin calculator measures profit as a share of sales instead of a return on money invested.
Figure return on investment with costs
To figure return on investment accurately, include all costs in the amount invested, such as fees, taxes, and repairs, and all income in the amount returned. Leaving out costs inflates ROI.
Rate of return calculator reference ($10,000 invested)
| Returned | Years | ROI | Annualized |
|---|---|---|---|
| $11,000 | 1 | 10% | 10.00% |
| $15,000 | 3 | 50% | 14.47% |
| $20,000 | 5 | 100% | 14.87% |
| $8,000 | 2 | −20% | −10.56% |
ROI Calculator FAQ
What is the ROI formula?
ROI = (amount returned − amount invested) ÷ amount invested × 100.
What is a good ROI?
It depends on risk and time; compare the annualized ROI with alternatives such as an index fund.
How do I calculate annual rate of return?
Take (returned ÷ invested) to the power 1 ÷ years, then subtract 1.
Does ROI include dividends or rent?
Yes. Add income received to the amount returned.