This ROI calculator measures return on investment by comparing net gain with the original cost.
Finance
ROI Calculator - Return on Investment
Calculate net profit, total ROI and annualized ROI.
Calculator
About this calculator
Formula notes
ROI = (gain - cost) / cost x 100, or net profit divided by investment cost.
Worked examples
- Example: investing 1,000 and ending at 1,250 produces a 25% ROI.
- An investment costing $8,000 and returning $9,600 produces $1,600 net gain and 20% simple ROI; if it took 4 years, 20% is not the annual return.
How to use it
- Enter the invested amount and the returned amount or profit.
- Review the percentage return.
- Compare ROI across options with similar time horizons.
Frequently asked questions
Does ROI include time?
Basic ROI does not annualize results. For multi-year comparisons, consider time-adjusted metrics too.
How should investments with different durations be compared?
Use an annualized, cash-flow-aware measure such as CAGR or IRR where appropriate, and compare risk and fees as well as return.
Limits and interpretation
- Basic ROI ignores the timing of cash flows and is not directly comparable across different holding periods.
- Taxes, fees, financing, reinvested income, risk, inflation, and non-cash benefits can change a decision without changing the basic formula.