How to use the ROI Calculator
- Enter the amount invested.
- Enter the amount returned.
- Enter the investment period (in years).
- Choose the currency from the list.
- The result updates instantly as you type. There is no button to press.
- Use Copy result to copy the figures, or Copy link to share a link that reopens the ROI Calculator with the same inputs.
How it works
Return on investment (ROI) measures how much you made or lost relative to what you put in. It is the most common way to compare investments of different sizes: a $500 profit on $1,000 (50%) is a far better result than a $500 profit on $10,000 (5%).
Plain ROI ignores time, which is its main weakness. A 50% return over 3 years is good; a 50% return over 20 years is poor. That is why this calculator also gives the annualized return, or compound annual growth rate (CAGR): the steady yearly rate that would turn your starting amount into your final amount over the same period. Use CAGR to compare investments held for different lengths of time, or to compare an investment with a savings rate.
For the amount returned, include everything you got back: the sale price or current value plus any dividends, interest or rent received, minus selling fees. For the amount invested, include purchase costs. For a business project, use the cost of the project and the extra profit it produced.
Formula
The simple average return divides ROI by the number of years. It always overstates the compound rate for gains, because it ignores the compounding of earlier returns.
Example
You invest $10,000 and get back $15,000 after 3 years. The profit is $5,000, so ROI = 5,000 ÷ 10,000 = 50%. The annualized return is 1.5^(1/3) − 1 ≈ 14.47% a year. The simple average would say 16.67% a year, but that overstates it, because 14.47% compounded for three years already makes 50%.
Frequently asked questions
What is a good ROI?
It depends on risk and time. Many people compare against a broad stock market index, which has historically returned roughly 7–10% a year over long periods, or against a risk-free savings rate. Always look at the annualized figure.
Can ROI be negative?
Yes. If you get back less than you invested, ROI is negative. A result of −100% means the investment was lost completely.
Does ROI include inflation?
No. To find the real return, subtract inflation from the annualized return as a rough estimate, or use the inflation calculator to adjust the final amount first.
Disclaimer: This calculator gives estimates for general information and education. It is not financial, tax or investment advice. Lenders, banks and tax authorities may round differently, charge fees or apply rules this tool does not model, so confirm figures with a qualified professional or your provider before making decisions.