ROI Calculator

Calculate the return on investment from what you put in and what you got back. Add the investment length and the ROI calculator also gives the annualized return.

Updated
Runs in your browser. Your data is not uploaded.

Adds the annualized return

Return on investment
–

Estimate only. Not financial advice.

How to use the ROI Calculator

  1. Enter the Amount invested and the Amount returned.
  2. Optionally, enter the Investment length in years.
  3. Press Calculate. The ROI appears with the gain or loss, the annualized ROI, and the return multiple.

How it works

ROI = (returned − invested) ÷ invested
annualized ROI = (1 + ROI)^(1 ÷ years) − 1
multiple = returned ÷ invested

Examples

  • $10,000 invested and $15,000 returned: 50% ROI, a $5,000 gain.
  • If that took 3 years, the annualized ROI is 1.5^(1/3) − 1 = 14.47% a year.

Why annualize?

A 50% return sounds better than a 20% return, but not if the first took 5 years and the second 1. Annualizing puts investments of different lengths on the same yearly basis so you can compare them fairly.

Limitations

  • Taxes, fees, and inflation are not subtracted unless you include them in the amounts.
  • Cash added or taken out partway through is not handled.

Frequently asked questions

How is ROI calculated?

Subtract the cost from the return, divide by the cost, and multiply by 100.

What is a good ROI?

It depends on risk and time. Compare the annualized figure with alternatives such as an index fund or a savings rate.

Can ROI be negative?

Yes. If you got back less than you put in, ROI is negative.

Often used together with the ROI Calculator.