ROI Calculator
Calculate return on investment percentage and annualized returns for any investment.
Return on Investment (ROI) is one of the most universally used metrics for evaluating the efficiency and profitability of an investment. It expresses the net gain or loss as a percentage of the original investment, making it easy to compare opportunities of different sizes. A positive ROI means you made money; a negative ROI means you lost. The higher the ROI, the more efficiently your capital was deployed.
While the basic ROI formula is simple — (net profit / initial investment) × 100 — it becomes even more useful when annualized. The annualized ROI accounts for how long the investment was held, letting you compare a 2-year investment with a 10-year one on equal footing. For projecting how your money might grow going forward at a given return rate, use the Investment Calculator.
ROI is a snapshot metric — it doesn't account for the compounding effect of reinvested returns over time. For a fuller picture of how compound growth amplifies wealth over the long run, pair this calculator with the Compound Interest Calculator. Together, these tools help you evaluate past performance and plan for the future with more precision.
Related Calculators
Explore more free online calculators to help with your calculations
Take this calculation further
Browse the financial calculators collection for more tools in this subject.
For a related calculation, use Roth IRA Calculator to project your Roth IRA balance at retirement with tax-free growth calculations. Alternatively, use Future Value Calculator to calculate the future value of investments with regular contributions and compound growth.
For the underlying method, read 401k vs Roth IRA: Which Is Right for You?.