Finance & business
ROI Calculator
Work out the return on any investment. Enter what you put in and what it's now worth to see your net profit and ROI percentage — and add a holding period to get the annualized return so you can compare investments fairly. ROI is the common yardstick American investors and business owners use to size up everything from a stock or rental property to a marketing campaign or a piece of equipment. Because a 30% gain over one year is very different from a 30% gain over five, the annualized figure lets you line up opportunities of different lengths on equal footing. It updates as you type, runs entirely in your browser, and shows the exact formula below.
Investment details
total return over the whole period
ROI ignores the timing of cash flows; the annualized figure assumes the gain compounds steadily over the holding period.
How the ROI calculator works
Return on investment (ROI) measures how much you gained relative to what you put in, as a percentage. A positive ROI means a profit; a negative ROI means a loss. Because plain ROI ignores how long you held the investment, a long-held gain can look better than it really is — that's why the annualized ROI spreads the return evenly across each year so you can compare opportunities of different lengths.
ROI formula
ROI = (final value − initial investment) ÷ initial investment × 100where: initial investment = the cost you paid final value = what the investment is now worth net profit = final value − initial investment
Annualized ROI formula
Annualized ROI = [ (final ÷ initial)^(1 ÷ years) − 1 ] × 100where: years = the holding period (this is the constant yearly rate that compounds to the same total return)
Notes & assumptions
- Enter the final value directly, or switch the dropdown to enter only the amount gained.
- Annualized ROI requires a holding period greater than zero; leave it blank to skip it.
- Does not account for additional contributions, fees, dividends or taxes along the way.
- Calculations are for general information only — verify before relying on them.
Worked example
Suppose you invest $10,000 and three years later it's worth $13,000. Your net profit is $3,000, so your total ROI is 3,000 ÷ 10,000 × 100 = 30%. That sounds strong, but it's spread over three years: the annualized ROI is about 9.14% per year, found by taking the cube root of 1.30 and subtracting one. Compare that to a stock that returned 30% in a single year — an annualized 30% — and you can see why the holding period changes the story entirely. Annualizing is what lets you fairly compare a rental property held for years against a quick flip.
Frequently asked questions
What is a good ROI?
There's no universal number — it depends on the asset, the risk and the time frame. As a benchmark, the U.S. stock market has historically returned around 7% to 10% a year on average over long periods, so a diversified investment beating that is generally considered solid. A risky venture should be expected to return much more to justify the chance of loss, while a safe asset like a Treasury bond will return far less.
What's the difference between ROI and annualized return?
Plain ROI is the total percentage gain over the entire holding period, ignoring how long that took. Annualized return (sometimes called CAGR) converts that total into a steady yearly rate that compounds to the same result. Annualized return is the fairer measure when you're comparing investments held for different lengths of time — this tool shows both when you enter a holding period.
What's the difference between ROI and ROE?
ROI (return on investment) measures the gain relative to the total amount you put into something. ROE (return on equity) is a corporate metric that measures a company's net income relative to shareholders' equity — essentially how efficiently a business turns its own capital into profit. ROI is broad and works for any investment; ROE is a specific ratio used to evaluate companies.
Does ROI account for fees, taxes and dividends?
Not by default. The basic ROI formula compares only your initial cost to your final value. In the real world, brokerage fees, capital gains taxes, and reinvested dividends all affect your true return. For an accurate picture, use your net proceeds after fees and taxes as the final value, and include any income you received along the way.
Can ROI be negative?
Yes. If your final value is less than your initial investment, your net profit is negative and so is your ROI, signaling a loss. For example, putting in $10,000 and ending with $8,000 is a −20% ROI. A negative ROI is a clear sign the investment lost money over the period measured.