Free ROI Calculator — Return on Investment
Calculate the return on investment (ROI) for any investment. Enter your initial cost, final value, and optional time period to see your net profit, ROI percentage, and annualized return.
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Frequently Asked Questions
What is ROI and how is it calculated?
Return on Investment (ROI) = (Net Profit / Cost of Investment) × 100. For example, investing $1,000 and gaining $1,250 back gives a net profit of $250 and ROI of 25%.
What is annualized ROI and why does it matter?
Annualized ROI adjusts for the time period of the investment so you can compare returns across different durations. A 50% return over 5 years is roughly 8.4% per year — much less impressive than 50% in one year.
What is a good ROI?
It depends on context. The S&P 500 averages ~10% annually. Real estate averages 8–12%. A good business ROI varies widely by industry. Any ROI should be compared to alternative uses of the same capital.