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ROI Calculator: Return on Investment and Annual Return

This free ROI calculator shows the return on an investment as a percentage and an amount. Add the holding time in years to see the annualized return, so you can compare investments held for different periods.

By Debmedia Technologies LLP · Kolkata, India · Updated

What Is It and When Do You Need It?

ROI tells you how much you gained or lost relative to what you put in. It lets you compare investments of different sizes, such as a shop renovation and a share purchase. Annualized ROI adds the time, so a 40% gain in two years is not mistaken for one in five.

Enter what you invested and what it became, and add the years for the yearly figure.

How to Use This Tool

  1. Enter the amount invested.
  2. Enter the final value.
  3. Optionally enter the years held.
  4. Press Calculate.

How the Calculation Works

Gain = final − cost. ROI = gain ÷ cost × 100. Annualized ROI = ((final ÷ cost)^(1 ÷ years) − 1) × 100. The tool shows both so you can compare.

Worked Example

Investing 100,000 and getting back 145,000 after 3 years is a gain of 45,000 and an ROI of 45%. The annualized return is about 13.2% a year.

Common Uses

  • Comparing investments.
  • Judging a business purchase.
  • Marketing and project returns.
  • Property and equipment decisions.

Tips and Common Mistakes

  • Compare annualized figures for different time periods.
  • Include all costs for a fair result.
  • A high ROI can carry high risk.

Next, you may need the CAGR calculator, compound interest calculator, profit margin calculator, break-even calculator.

Everything runs in your browser. Nothing you type is uploaded, stored or sent to any outside service.

Frequently Asked Questions

Return on investment is the gain or loss as a percentage of the amount invested: (final value − cost) ÷ cost × 100.
It shows the average yearly return that would give the same total over the holding period, using compounding: (final ÷ cost)^(1 ÷ years) − 1.
Yes. A negative ROI means you lost money.
Only if you include them in the numbers. Add fees and tax to the amount invested or subtract them from the final value for a true figure.

Disclaimer: results are calculated in your browser from the numbers you enter. Check important results before you rely on them for money, health, safety or legal decisions.