ROI Calculator
Calculate return on investment as a percentage, with annualized return if you supply a holding period.
What the ROI Calculator does
ROI expresses profit as a percentage of what you put in. It is simple and universal, but it ignores time — a 50% return over one year is far better than the same 50% over ten, which is why the annualized figure matters.
Formula
ROI = (Final − Cost) ÷ Cost × 100Annualized = (Final ÷ Cost)^(1 ÷ years) − 1
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Amount invested | selected currency | Yes | Accepts more than 0. |
| Final value or amount returned | selected currency | Yes | Accepts 0 or more. |
| Holding period | years | Optional | Optional — enables the annualized figure. Accepts 0 or more, up to 100. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Amount invested and Final value or amount returned.
- Optionally add Holding period.
- Select Calculate.
Worked example
You invest $8,000 and sell for $11,600 after 3 years.
- Invested
- 8000
- Final
- 11600
- Years
- 3
ROI 45%, annualized 13.2%.
Frequently asked questions
Should ROI include fees and taxes?
For a true picture, yes. Subtract commissions, management fees and taxes from the final value before calculating.
What counts as a good ROI?
It depends on risk and time. Compare the annualized figure to a benchmark like a broad index or the risk-free rate rather than judging the raw percentage.