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ROI Calculator

📈 ROI Calculator

Calculate the Return on Investment (ROI) of any investment instantly. Enter your initial cost and final value to see net profit, ROI percentage, and annualized return.

Initial Investment ($)

Final Value / Return ($)

Duration (years, optional)

ROI Formula

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

For annualized ROI over multiple years: Annualized ROI = (1 + ROI/100)^(1/years) − 1

How to Calculate ROI — Step by Step

1

Enter Initial Investment

Enter the total amount you invested (purchase price, fees, etc.).
2

Enter Final Value

Enter the final value received (sale price + any dividends or income).
3

Enter Duration (optional)

Enter the investment duration in years to see annualized ROI.
4

Read Your Results

The calculator shows ROI %, net profit, and annualized return instantly.

Real-World Example

You invest $10,000 in stocks. After 2 years, your portfolio is worth $13,500.

Net Profit = $13,500 − $10,000 = $3,500

ROI = ($3,500 ÷ $10,000) × 100 = 35%

Annualized ROI = (1.35)^(1/2) − 1 = 16.2% per year

'Does ROI include time?', 'answer' => 'Basic ROI doesn\'t consider time. That\'s why we also calculate annualized ROI, which accounts for the investment period and allows fair comparison between investments of different durations.'], ['question' => 'What\'s the difference between ROI and profit margin?', 'answer' => 'ROI measures the efficiency of an investment relative to its cost. Profit margin measures how much of revenue is profit. ROI is for investments; profit margin is for business operations.'], ['question' => 'Can ROI be negative?', 'answer' => 'Yes. A negative ROI means you lost money — your final value is less than your initial investment. For example, investing $10,000 and getting back $8,000 gives an ROI of -20%.'], ['question' => 'How is ROI different from IRR?', 'answer' => 'ROI is simple and doesn\'t account for the time value of money or multiple cash flows. IRR (Internal Rate of Return) is more sophisticated and handles complex, multi-period investment scenarios.'], ]" />