ROI Calculator
Calculate your return on investment (ROI) percentage from investment cost and total return.
ROI
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Investment Cost
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Total Return
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Net Profit
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Annualized ROI
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How to Use the ROI Calculator
- Enter your investment cost: The total amount you invested.
- Enter your total return: The final value or total return from the investment.
- Optionally enter the period: Enter years to see annualized ROI.
- View your results: ROI percentage, net profit, and annualized ROI appear instantly.
ROI Formula
Return on Investment is calculated as:
ROI (%) = ((Total Return - Investment Cost) / Investment Cost) × 100
Annualized ROI:
Annualized ROI = ((1 + ROI/100) ^ (1/years) - 1) × 100
ROI Examples
| Investment | Return | Profit | ROI |
|---|---|---|---|
| $10,000 | $15,000 | $5,000 | 50% |
| $5,000 | $7,500 | $2,500 | 50% |
| $20,000 | $25,000 | $5,000 | 25% |
| $1,000 | $3,000 | $2,000 | 200% |
| $50,000 | $45,000 | -$5,000 | -10% |
Frequently Asked Questions
What is a good ROI?
A good ROI depends on the type of investment and risk level. The stock market historically returns about 7-10% annually. Real estate may return 8-12%. Higher-risk investments may need 15-25% ROI to justify the risk.
Why use annualized ROI?
Annualized ROI lets you compare investments with different time horizons. A 50% return over 5 years is less impressive than 50% over 1 year. Annualizing normalizes the comparison.
Can ROI be negative?
Yes. A negative ROI means you lost money on the investment. For example, if you invested $10,000 and the final value is $8,000, your ROI is -20%.