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Finance · Popular

ROI Calculator

Calculate Return on Investment (ROI), annualized returns, and total gain or loss from any investment over any holding period.

Return on Investment

50%

Net profit

$50,000

Annualized ROI

22.47%

Method

How this calculator works

ROI is a simple ratio of net profit to investment cost. Annualized ROI uses geometric mean to normalize different holding periods for fair comparison.

ROI = ((Returned − Invested) ÷ Invested) × 100

Annualized ROI = ((Returned/Invested)^(12/months) − 1) × 100

Net Profit = Returned − Invested
Total Return Multiplier = Returned ÷ Invested
  1. Enter the total amount invested (cost basis).
  2. Enter the total amount returned (current value + any dividends/income received).
  3. Enter the holding period in months.
  4. See ROI percentage, annualized ROI, net profit, and total return multiplier.

Examples

Worked examples

Real numbers, end-to-end results.

Invested $1,00,000 · Returned $1,50,000 · 24 months

ROI 50% · Annualized 22.47%

Solid 2-year investment return.

Invested $10,000 · Returned $18,000 · 36 months

ROI 80% · Annualized 21.6%

Strong 3-year performance.

Invested $50,000 · Returned $45,000 · 12 months

ROI −10% · Annualized −10%

Loss scenario — returned less than invested.

Use cases

When to use it

  • Evaluate stock, mutual fund, or real estate investment performance.
  • Compare investments with different holding periods using annualized ROI.
  • Business decisions — measure return from marketing spend or new equipment.
  • Set target returns for financial planning.

Enter values in your preferred currency. Results are returned in the same currency.

Disclaimer: This calculator provides estimates for informational and educational purposes only. It is not a substitute for professional financial advice, tax planning, or investment guidance. Always consult a qualified financial advisor or accountant for decisions affecting your finances.

Sources: Standard financial mathematics. No external regulatory formula required.

FAQ

Frequently asked questions

What is ROI (Return on Investment)?
ROI measures the gain or loss from an investment relative to its cost. ROI = (Net Profit ÷ Investment Cost) × 100. A 50% ROI means you earned half of your investment as profit.
What is annualized ROI?
Annualized ROI normalizes returns to a per-year basis, making it fair to compare investments held for different durations. A 50% return over 2 years is ~22.5% annualized.
Is a higher ROI always better?
Not necessarily. Higher ROI often comes with higher risk. A 200% ROI from crypto vs 12% from an index fund — the latter may be more reliable. Consider risk-adjusted returns.
How do I calculate ROI on stocks?
ROI = ((Current Value − Purchase Price) ÷ Purchase Price) × 100. Include dividends received in the "returned amount" for total return.
What is a good ROI?
Context matters. Stock market average is ~10% annualized. Real estate: 8–12%. Savings account: 4–7%. A "good" ROI beats inflation (6–7%) and your opportunity cost.
Does ROI account for inflation?
Standard ROI does not. For real (inflation-adjusted) returns, subtract the inflation rate from your annualized ROI. 15% ROI − 6% inflation = 9% real return.
Methodology, assumptions & limitations

How we calculate: This calculator uses standard, peer-reviewed mathematical formulas implemented in TypeScript. All calculations run entirely in your browser — no data is sent to any server.

Assumptions: Unless stated otherwise, calculations assume constant rates over the specified period, no taxes or fees beyond those explicitly input, and standard compounding conventions for the formula type.

Limitations: Results are estimates for planning purposes. Real-world outcomes may differ due to variable rates, regulatory changes, taxes, fees, inflation, or other factors not modeled. This tool does not constitute financial, tax, or investment advice.

When NOT to use this: Do not rely solely on this calculator for major financial decisions such as mortgages, retirement planning, or tax filing without consulting a qualified financial advisor or accountant.

Feedback: Found an error or have a suggestion? Contact us — we review and correct reported issues within 48 hours.

Deep Dive Guide

Roi Guide

Comprehensive guide for roi.

Read Full Guide

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