FINANCE · FREE ONLINE CALCULATOR

ROI Calculator

Calculate return on investment (ROI) from the amount invested and the amount returned. Include fees and costs, and add the holding period to see annualized ROI so you can compare investments of different lengths.

Detailed optionsStep-by-step guideWorked examples

01 / RETURN ON INVESTMENT

How much did your investment really earn?

Enter what you put in and what you got back. Add the holding period to see the annualized return.

Amount invested (USD)Amount returned / final value (USD)Extra costs & fees (USD, optional)Investment length in years (optional)

ROI = (final value − total cost) ÷ total cost × 100. A result below 0% is a loss.

Return on investment (ROI)35%

($13,500.00 − $10,000.00) ÷ $10,000.00 × 100

Net profit: $3,500.00Annualized ROI: 10.52% per year over 3 yearsMoney multiple: 1.35× your total cost

02 / TIME MATTERS

The same ROI over different time periods

A 35% return earned in one year is very different from 35% earned over ten. Annualized ROI shows the yearly equivalent.

Total ROI held constant, annualized by holding period
Holding period	Total ROI	Annualized ROI
1 year	35%	35%
2 years	35%	16.19%
3 years	35%	10.52%
5 years	35%	6.19%
10 years	35%	3.05%

YOUR ANIMATED GUIDE

Follow the ROI calculation, step by step.

These steps use your current inputs. Choose a step or play the walkthrough.

STEP 1 / 4

$10,000.00

1234

Add up the total cost

Your cost basis is everything you paid to make the investment: the purchase amount plus fees, commissions or other costs.

$10,000.00 + $0.00 = $10,000.00

Explore at your own pace

How to use this roi calculator

An ROI calculator measures how much an investment gained or lost compared with what it cost. Enter the amount invested, the final value or amount returned, any extra costs and, optionally, how long you held it. You get the ROI percentage, the net profit or loss, the money multiple and the annualized ROI, which lets you compare investments held for different lengths of time.

What is ROI?

Return on investment (ROI) is the net gain from an investment divided by its cost, shown as a percentage. If you invest 10,000 and get back 13,500, the gain is 3,500 and the ROI is 35%. A negative ROI means you lost money. ROI is used for stocks, property, business projects, equipment purchases and marketing campaigns because it is simple and works in any currency.

Why annualized ROI matters

Simple ROI ignores time. Earning 35% in one year is far better than earning 35% over ten years. Annualized ROI converts the total return into the constant yearly rate that would produce the same result, using (final ÷ cost)^(1 ÷ years) − 1. Use it to compare investments with different holding periods.

What to include in the cost and return

Include every cost that was needed to make the investment: purchase price, commissions, taxes paid at purchase, renovation or setup costs. On the return side, include the sale value plus income received along the way, such as dividends, rent or interest. Leaving out costs makes ROI look better than it really was.

ROI formulas, explained

ROI

ROI = (final value − total cost) ÷ total cost × 100

Total cost = amount invested + extra costs.

Net profit

Net profit = final value − total cost

A negative number is a loss.

Annualized ROI

Annualized ROI = (final value ÷ total cost)^(1 ÷ years) − 1

Equivalent to a compound annual growth rate (CAGR).

EVERY OPTION, EXPLAINED

Know what goes into your result.

Use this reference to check units, assumptions and advanced settings.

ROI calculator input reference
Input or option	What it means
Amount invested	The money you originally put into the investment.
Amount returned / final value	What the investment is worth now or what you received when you sold it, including income such as dividends or rent.
Extra costs & fees	Optional. Commissions, taxes, closing costs, repairs or other costs that were part of the investment. Added to the cost basis.
Investment length	Optional. Years the investment was held. Use decimals for part years (18 months = 1.5). Needed for annualized ROI.

PUT THE FORMULA TO WORK

Worked examples you can try.

Load an example into the calculator, then change one value to explore.

EXAMPLE 01

A stock investment

Invest 10,000, sell for 13,500 after 3 years. ROI = 35%; annualized ROI ≈ 10.52% per year.

EXAMPLE 02

A property with costs

Buy for 200,000 with 15,000 in costs and sell for 260,000 after 5 years. ROI ≈ 20.93%; annualized ≈ 3.87% per year.

EXAMPLE 03

An investment that lost money

Invest 5,000 and get back 4,200. Net loss 800; ROI = −16%.

MAKE THE NUMBERS MAKE SENSE

Common mistakes to avoid

Comparing simple ROI across investments held for different lengths of time instead of annualized ROI.
Leaving fees, taxes or setup costs out of the cost basis.
Dividing the gain by the final value instead of by the cost.

A LITTLE MORE CLARITY

Frequently asked questions

What does an ROI calculator do?

It compares what an investment returned with what it cost and expresses the difference as a percentage. A positive ROI is a gain; a negative ROI is a loss.

Does this ROI calculator include time?

Yes, optionally. Enter the number of years you held the investment to see the annualized ROI, the equivalent yearly return.

How do you calculate ROI?

Subtract the total cost of the investment from its final value, divide by the total cost, then multiply by 100. ROI = (final value − cost) ÷ cost × 100. For example, (13,500 − 10,000) ÷ 10,000 × 100 = 35%.

What is the ROI formula in Excel?

If the cost is in A1 and the final value is in B1, use =(B1-A1)/A1 and format the cell as a percentage. For annualized ROI over the years in C1, use =(B1/A1)^(1/C1)-1.

What is a good ROI?

It depends on the risk, the time involved and what else you could do with the money. Compare the annualized ROI with alternatives of similar risk, such as a savings account or an index fund, rather than using a single “good” number.

What is the difference between ROI and annualized ROI?

ROI is the total return over the whole holding period. Annualized ROI is the equivalent yearly rate. A 35% ROI over 3 years is about 10.5% per year.

Can ROI be negative?

Yes. If you get back less than you put in, the ROI is negative. −100% means the investment lost everything.

Should fees and taxes be included in ROI?

Yes, if you want the real return. Add purchase fees and other costs to the cost basis, and use the amount you actually received after selling costs as the final value.

How do I calculate marketing or business ROI?

Use the campaign or project cost as the investment and the profit it generated (not just revenue) as the gain. Revenue-based ratios such as ROAS are different measures and are usually higher than ROI.

Methodology & assumptions

Calculations run in your browser using the formulas and assumptions explained on this page. Intermediate values retain full floating-point precision; displayed amounts are rounded. ROI is computed as (final value − cost basis) ÷ cost basis, where cost basis = amount invested + extra costs. Annualized ROI uses (final value ÷ cost basis)^(1 ÷ years) − 1 and assumes a single investment at the start and a single value at the end; it does not model cash flows in between, taxes or inflation. Results are illustrations, not investment advice. Sharing an input link places those inputs in the URL.