ROI Calculator
An ROI (return on investment) calculator measures profitability as net profit divided by cost, expressed as a percentage, and also annualizes that return over a chosen holding period for comparison across different timeframes. Annualizing lets you compare a two-year investment that returned 30% total against a five-year investment that returned 60% total on equal footing, since a bigger total return over a much longer holding period is not necessarily the better use of your money per year invested.
Educational estimate only. Results are not medical, legal, or financial advice. Confirm important decisions with a qualified professional.
How it works
- Enter the total cost of the investment.
- Enter the total value it returned.
- Enter the holding period in years.
- Read the ROI percent, net profit, and annualized ROI.
Formula ROI% = (gain − cost) / cost × 100; annualized = ((gain/cost)^(1/years) − 1) × 100
Frequently asked questions
Why does this show two percentages?
Total ROI is the overall return over the whole holding period; annualized ROI spreads that return evenly per year, which is the only fair way to compare investments held for different lengths of time.
Is this the same as the bond ROI calculator?
No — that tool is specific to bond price/coupon mechanics. This one is a general cost-vs-gain ROI for any investment, business spend, or marketing campaign.
Can ROI be negative?
Yes — if the gain is less than the cost, both the ROI and annualized ROI will be negative, reflecting a loss.
Does this account for fees or taxes?
No — enter net cost and net gain (after fees) for an accurate result; this tool does not apply any fees itself.
Is this financial advice?
No. It is an educational calculation based on numbers you provide.