What is the return on investment formula?

The return on investment formula is: ROI = (final value − initial investment) ÷ initial investment × 100. For example, investing $10,000 and ending with $14,500 gives ($14,500 − $10,000) ÷ $10,000 × 100 = 45% ROI.

How do I calculate ROI as a percentage?

Subtract your initial investment from the final value, divide by the initial investment, and multiply by 100. The calculator above runs this investment profit calculation for you and also shows net profit in dollars.

What is annualized ROI and how is it calculated?

Annualized ROI is the compound annual growth rate: (final value ÷ initial investment)^(1 ÷ years) − 1, as a percent. It converts any holding period into an equivalent yearly rate, so you can fairly compare a 2-year and a 10-year investment.

What is the difference between ROI and annualized ROI?

Simple ROI measures the total gain or loss over the whole period; annualized ROI spreads it into an equivalent per-year rate. A 45% ROI over 3 years is only ~13.2% annualized — ignoring the time period is the classic ROI vs annualized ROI mistake.

What is a good ROI percentage?

It depends on the risk and time frame: the long-run stock market averages roughly 10% annualized, while a small business might target 20–30% annualized. Always compare the annualized ROI of alternatives over the same period rather than judging one number in isolation.

ROI Calculator

What is Roi calculator?

ROI Calculator — Calculate your return on investment: enter what you put in, what you got back, and the time period to see ROI, net profit, and annualized ROI.

The simple ROI uses the open-source engine (parachute-alt/roi-calculator, MIT): ROI = (final value − initial investment) ÷ initial investment × 100. Annualized ROI is not part of the upstream app — this tool adds the standard textbook definition: (final ÷ initial)^(1 ÷ years) − 1, expressed as a percent (the compound annual growth rate of the investment). Limitations: it ignores cash flows in between, fees, and taxes; it assumes the investment was a single lump sum; and annualized ROI understates risk — two investments with the same annualized return can have very different volatility.

Why use this roi calculator?

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Built for roi calculator

Calculate your return on investment: enter what you put in, what you got back, and the time period to see ROI, net profit, and annualized ROI.

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Transparent & honest

The investment is treated as a single lump sum at the start; staged contributions and withdrawals are not modeled.

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Private by design

Everything runs in your browser. Your inputs never leave your device.

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Works everywhere

Fully responsive — perfect on desktop, tablet, and mobile. No app needed.

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Regularly updated

Regularly maintained and reviewed to ensure accuracy.

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Free forever

No accounts, no limits, no watermarks. Use ROI Calculator as much as you need.

How to use ROI Calculator

1Enter the amount you invested in the "Initial investment" field.
2Enter the final value — what you sold it for, or what it is worth now.
3Enter the time period in years (use decimals for partial years, e.g. 0.5 for six months).
4Run the tool to see your ROI percentage, calculated as (final value − investment) ÷ investment × 100.
5Compare the simple ROI with the annualized ROI — the annualized number tells you the equivalent yearly growth rate, which is the fair way to compare investments held for different lengths of time.

What can you do with ROI Calculator?

Return on investment formula — Calculate your return on investment: enter what you put in, what you got back, and the time period to see ROI, net profit, and annualized ROI.
How to calculate roi percentage — Calculate your return on investment: enter what you put in, what you got back, and the time period to see ROI, net profit, and annualized ROI.
Annualized roi formula — Calculate your return on investment: enter what you put in, what you got back, and the time period to see ROI, net profit, and annualized ROI.
Investment profit calculator — Calculate your return on investment: enter what you put in, what you got back, and the time period to see ROI, net profit, and annualized ROI.

Good to know

The investment is treated as a single lump sum at the start; staged contributions and withdrawals are not modeled.
Fees, taxes, and inflation are excluded — nominal ROI overstates real, after-tax return.
Both initial investment and final value must be positive (the upstream engine's rule), so a total loss to $0 is outside this calculator's scope.
Annualized ROI is the compound annual growth rate, a textbook definition added on top of the upstream engine.

How it works

The simple ROI uses the open-source engine (parachute-alt/roi-calculator, MIT): ROI = (final value − initial investment) ÷ initial investment × 100. Annualized ROI is not part of the upstream app — this tool adds the standard textbook definition: (final ÷ initial)^(1 ÷ years) − 1, expressed as a percent (the compound annual growth rate of the investment). Limitations: it ignores cash flows in between, fees, and taxes; it assumes the investment was a single lump sum; and annualized ROI understates risk — two investments with the same annualized return can have very different volatility.

Examples

Invest $10,000, sell for $14,500 after 3 years

ROI 45.00%, net profit $4,500.00, annualized ROI 13.21%.

Invest $5,000, recover $4,000 after 2 years

ROI −20.00%, net profit −$1,000.00, annualized ROI −10.56% — a loss compounds the same way a gain does.

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