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ROI Calculator
Enter what you put in and what you got back, and this calculator gives you the total gain or loss, the ROI percentage, the return multiple, and — if you enter a holding period — the annualized return, so a 30% gain over 2 years can be compared fairly with a 30% gain over 5 years.
ROI here is the simple return on the amounts you enter. It does not add fees, taxes or inflation unless those are already inside your numbers — treat it as an estimate of the investment's performance, not a tax or accounting figure.
How it works
ROI = (final value − initial investment) ÷ initial investment × 100. A positive result is a gain, a negative result is a loss. Return multiple = final value ÷ initial investment: 1.30× means every $1 became $1.30. Annualized ROI spreads the return evenly over the holding period so different time spans can be compared: annualized = (final ÷ initial)1 ÷ years − 1, expressed as a percent. It is the steady yearly rate that would grow the initial amount to the final amount. Worked example: invest $10,000 and get back $13,000 after 2 years: gain = $13,000 − $10,000 = $3,000; ROI = $3,000 ÷ $10,000 = 30.00%; multiple = 1.30×; annualized = 1.301÷2 − 1 = 14.02% per year. The same 30% over 5 years would annualize to only 5.39% — which is why the holding period matters. Estimates only: fees, taxes and inflation are not included unless they are already inside your numbers. Not financial advice.
Frequently asked questions
What is a good ROI?
It depends on the risk and the time span. A 7–10% annualized return is a common long-run benchmark for diversified stock-market investing, but a 'good' ROI for a single business project or a rental property is judged against its own risk and alternatives — and always on the annualized figure, not the headline total.
What is the difference between ROI and annualized ROI?
ROI is the total return over the whole holding period; annualized ROI is the equivalent steady yearly rate. A 30% ROI over 2 years (14.02% annualized) is much better than a 30% ROI over 5 years (5.39% annualized). Compare investments on the annualized number.
Can ROI be negative?
Yes — if the final value is below the initial investment, ROI is negative. Losing half your money is a −50% ROI, and you would then need a +100% gain just to break even, because the base has shrunk.
Does ROI include fees and taxes?
Only if you include them. For an honest figure, subtract purchase costs, fees and taxes from the final value (or add them to the initial investment) before calculating. This calculator uses exactly the numbers you enter.
How is ROI different from profit?
Profit is a dollar amount ($3,000 in the example); ROI is that profit as a percentage of what you put in (30%). Profit tells you how much you made, ROI tells you how efficiently your money worked.
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