Free ROI Calculator
Calculate your return on investment (ROI) for any investment or project. See percentage return, net profit, and annualized ROI instantly.
Investment Details
Cost of investment or project
Current value or revenue generated
For annualized ROI calculation
Maintenance, fees, etc.
Dividends, interest, etc.
Return on Investment (ROI)
Profit on investment
ROI
+50.00%
Net Profit
$5,000
Annualized ROI
+50.00%
Total Return
$15,000
ROI Formulas
Basic ROI Formula:
Annualized ROI Formula:
ROI Benchmarks
How to Use the ROI Calculator
Enter Your Initial Investment
Input the amount you originally invested or spent. Include all costs associated with the investment such as purchase price, fees, and any additional expenses.
Enter the Final Value or Return
Input the current or final value of your investment. This is what your investment is worth now or what you sold it for, including any dividends or income received.
Add Investment Duration (Optional)
Enter how long you held the investment in years. This allows the calculator to compute annualized ROI, which helps compare investments of different time periods.
Review Your ROI Results
View your total ROI percentage, net profit in dollars, and annualized return. Use these metrics to evaluate performance and compare different investment opportunities.
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Understanding Return on Investment
Return on Investment (ROI) is one of the most important metrics for evaluating investment performance. It helps you understand how efficiently your money is working for you, whether you're investing in stocks, real estate, business ventures, or marketing campaigns.
When to Use ROI
- Comparing different investment opportunities
- Evaluating business or project profitability
- Measuring marketing campaign effectiveness
- Assessing real estate investments
- Tracking portfolio performance over time
Frequently Asked Questions
What is ROI (Return on Investment)?
ROI is a financial metric used to evaluate the profitability of an investment. It measures the gain or loss generated relative to the amount invested, expressed as a percentage. The formula is: ROI = ((Final Value - Initial Investment) / Initial Investment) × 100.
What is a good ROI percentage?
A "good" ROI varies by context. For the stock market, 7-10% annually is considered average. Real estate typically targets 8-12%. Business investments often require 15-25%+ to justify the risk. Any positive ROI means you made money.
How do I calculate annualized ROI?
Annualized ROI shows your average yearly return. The formula is: ((1 + Total ROI)^(1/years) - 1) × 100. This helps compare investments of different durations fairly.
Does ROI include all costs?
For accurate ROI, include all costs: purchase price, fees, maintenance, taxes, and any other expenses. The net gain should be your total return minus ALL costs associated with the investment.
How is ROI different from profit margin?
ROI measures return relative to what you invested, while profit margin measures profit relative to revenue. For example, if you invest $100 and earn $120 in revenue with $90 in costs, your ROI is 30% but your profit margin is 25%.
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