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ROI Calculator

Calculate return on investment as a percentage and annualized rate.

ROI

40%

Net Profit/Loss

4,000

Annualized ROI

11.87%

Related Guide

ROI Calculator: Why Annualized Return Matters More Than Total Return

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About This Tool

Free ROI (return on investment) calculator — enter your initial investment cost and final (or current) value to instantly calculate your total return as a percentage, the net profit or loss, and the annualized ROI if you provide a holding period. ROI is one of the most widely used metrics in business and investing because it's simple and comparable across very different types of investments — stocks, real estate, marketing campaigns, or a small business purchase can all be measured on the same percentage scale. This tool also calculates annualized ROI, which corrects for the fact that a 50% return over 5 years is very different from a 50% return over 6 months. Runs entirely in your browser — no data is uploaded or stored.

How to Use

  1. 1

    Enter initial investment

    Type how much you originally invested or spent.

  2. 2

    Enter final value

    Type the current or final value of the investment.

  3. 3

    Add a holding period (optional)

    Enter the number of years held to also see annualized ROI.

Frequently Asked Questions

What is the ROI formula?+
ROI (%) = (Final Value − Initial Investment) / Initial Investment × 100. A positive result means a gain; a negative result means a loss.
What is annualized ROI and why does it matter?+
Annualized ROI spreads your total return evenly across the number of years held, using the formula (1 + ROI)^(1/years) − 1, so you can fairly compare investments held for different lengths of time.
Is a higher ROI always a better investment?+
Not necessarily — ROI doesn't account for risk or how long your money was tied up, so two investments with the same ROI can carry very different levels of risk.

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