ROI Calculator
Find the return on investment (ROI) from what you put in and what it is worth now. The calculator gives the return as a percentage, the net gain or loss, and, if you enter how long you held it, the annualised return so investments of different lengths can be compared.
What the investment is worth now, or what you received.
Needed for the annualised return.
Result
Enter the amount invested and the final value.
The calculation runs in this browser tab. Nothing you enter is uploaded, saved or logged.
What is return on investment?
ROI measures how much an investment gained or lost compared with what was put in. It is the net gain divided by the amount invested: investing 10,000 and ending with 13,500 is a gain of 3,500, an ROI of 35%. A negative ROI is a loss, and an ROI of −100% means everything was lost.
ROI on its own ignores time: 35% after one year is far better than 35% after ten. The annualised return fixes that by converting the total return into the constant yearly rate that would produce it, so a 35% gain over 3 years becomes about 10.5% a year. This is also called the compound annual growth rate (CAGR).
How to use the ROI Calculator
- Enter the amount you invested, including any fees you want counted as cost.
- Enter the final value: what the investment is worth now, or what you received when you sold it, including income.
- Optionally enter how many years you held it, to get the annualised return.
- Read the ROI, the net gain or loss and the multiple of your investment. Use Copy result to copy the ROI.
Formula
- ROI
- ROI = (final value − invested) ÷ invested × 100
- Multiple
- multiple = final value ÷ invested
- Annualised return
- (final value ÷ invested)^(1 ÷ years) − 1
The annualised return needs a fractional power, so it is computed in floating point and rounded to two decimals. The ROI itself is exact.
Include in the final value any income you received (dividends, rent, interest), and in the amount invested any fees you paid, to get a complete picture.
Worked example
10,000 invested and worth 13,500 after 3 years. These are the results the calculator gives:
| Question | Result |
|---|---|
| Input: Amount invested | 10000 |
| Input: Final value | 13500 |
| Input: Time held, in years (optional) | 3 |
| Return on investment | 35.00% |
| Net gain or loss | 3,500.00 |
| Final value as a multiple of the investment | 1.3500× |
| Annualised return (per year) | ≈ 10.52% |
Assumptions and limits
- ROI ignores risk: two investments with the same ROI can have very different chances of loss.
- It does not include tax or inflation unless you have already allowed for them in the amounts. A positive ROI can still be a real loss after inflation.
- The annualised return assumes a steady yearly growth, which real investments do not have; it is a way to compare, not a forecast.
- Past returns do not predict future returns. These results are a calculation from the numbers you enter, not financial advice.
Frequently asked questions
How do I calculate ROI?
Subtract the amount invested from the final value, divide by the amount invested and multiply by 100. For 10,000 that ends at 13,500: 3,500 ÷ 10,000 = 35%.
What is the annualised return?
The constant yearly growth rate that would give the same total result over the period. 35% over 3 years is (1.35)^(1/3) − 1, about 10.5% a year. It lets you compare investments held for different lengths of time.
What is a good ROI?
There is no universal answer. A good return depends on the risk taken, the time it took, and what else you could have done with the money. Compare it with alternatives and with inflation.
Can ROI be negative?
Yes. If the final value is less than the amount invested, the ROI is negative. If it is zero, the ROI is −100%.
Does ROI include dividends, fees and taxes?
Only if you include them. Add income received to the final value, and fees to the amount invested, and subtract tax if you want an after-tax figure.
Why is the annualised return not simply ROI divided by years?
Because returns compound: each year’s gain earns a return of its own. Dividing 35% by 3 gives 11.7%, but a yearly return of 11.7% for three years would give more than 35%. The correct yearly rate is 10.5%.