ROI Calculator

Calculate Return on Investment, annualized ROI and total profit instantly.




Frequently Asked Questions About ROI Calculator

ROI (Return on Investment) measures the profitability of an investment by comparing net profit to the original cost.

ROI Formula:
ROI = (Final Value − Initial Investment) ÷ Initial Investment × 100

Example:
If you invest $1,000 and your final value is $1,200:
ROI = (1,200 − 1,000) ÷ 1,000 × 100
ROI = 20%
Step 1: Subtract the initial investment from the final value to determine total gain.
Step 2: Divide the gain by the initial investment.
Step 3: Multiply by 100 to convert the result into a percentage.

Formula:
ROI = (Gain − Cost) ÷ Cost × 100
Annualized ROI measures the average yearly return of an investment over a specific period.

Annualized ROI Formula:
Annualized ROI = [(Final Value ÷ Initial Investment)^(1 ÷ Years) − 1] × 100

Example:
If $1,000 grows to $1,500 in 3 years:
Annualized ROI = [(1500 ÷ 1000)^(1 ÷ 3) − 1] × 100
Profit represents the net earnings generated from an investment.

Profit Formula:
Profit = Final Value − Initial Investment

Example:
If you invest $2,000 and receive $2,600:
Profit = 2,600 − 2,000 = $600

What Is ROI?

ROI (Return on Investment) is a financial metric that measures the profitability of an investment. It shows how much profit or loss is generated relative to the initial investment amount.


ROI Formula:

ROI = (Final Value − Initial Investment) ÷ Initial Investment × 100


How to Calculate ROI

  1. Subtract the initial investment from the final value.
  2. Divide the result by the initial investment.
  3. Multiply by 100 to convert it into a percentage.

Example: If you invest $1,000 and receive $1,200, your ROI is 20%.



Annualized ROI Calculator

Annualized ROI measures the average yearly return of an investment using compound growth principles. This allows you to compare investments of different durations more accurately.


Annualized ROI Formula

Annualized ROI = [(Final Value ÷ Initial Investment)^(1 ÷ Years) − 1] × 100


Where ROI Is Used

Marketing ROI

Measure digital marketing campaign performance.


Real Estate ROI

Evaluate property appreciation and rental income.


Stock Market ROI

Analyze investment portfolio returns.


Business ROI

Assess corporate investments and operational efficiency.


What Is a Good ROI?

A good ROI depends on industry, risk, and time horizon. Generally:



Why Use an Online ROI Calculator?

Manual ROI calculations can lead to errors when comparing multiple investment opportunities. An online ROI calculator provides instant, accurate, and consistent results.


By using our ROI calculator, you can: