💹 ROI Calculator
Calculate return on investment, with optional annualized rate.
About this tool
Calculates return on investment (ROI) as the percentage gain or loss relative to the amount originally invested, using the standard formula ROI = (Return − Cost) / Cost × 100.
If you provide a holding period in years, it also computes the annualized ROI — useful for comparing investments held for different lengths of time on equal footing.
Worked example
Investing $1,000 and getting back $1,250 gives a 25% ROI. Spread over 2 years, that's about an 11.8% annualized return.
How to use it
- Enter the amount you invested.
- Enter the amount you got back (or its current value).
- Optionally add the holding period in years to see an annualized figure.
- Press Calculate ROI.
Tips
- Raw ROI doesn't account for time — a 25% return over 5 years is very different from 25% over 6 months. Use the annualized figure to compare fairly.
- ROI ignores fees, taxes, and inflation; factor those in separately for a true net picture.
- Negative ROI simply means the return was less than the amount invested — the calculator handles losses the same way as gains.
FAQ
What's a "good" ROI?
It depends heavily on the asset class and time frame — there's no universal benchmark, though stock market long-run averages are often cited around 7–10% annualized as a loose reference point.
What's the difference between ROI and annualized ROI?
ROI is the total return over the whole holding period; annualized ROI spreads that return evenly across each year, which makes investments of different lengths comparable.
Does this account for taxes or fees?
No — this is a gross calculation. Subtract any fees or taxes from your "amount returned" figure first if you want a net ROI.
From the blog: getting the most out of this tool
ROI is one of those numbers that sounds simple but gets misused constantly — usually by comparing a 3-month ROI directly against a 3-year one as if they were the same kind of measurement.
That's why we built in the optional annualized field: it takes two seconds to fill in and turns an apples-to-oranges comparison into a fair one.