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ROI Calculator

Find the return on investment (ROI) as a percentage, your gain or loss, and the annualized ROI when you know how long you held it.

Results

ItemValue
Include every cost in the amount invested, such as fees and repairs, and every income in the amount returned, such as dividends or rent. Taxes and inflation are not included.

Quick Answer

ROI = (amount returned − amount invested) ÷ amount invested × 100. If you invest $10,000 and get back $15,000, your ROI is 50%. Over 3 years, that is an annualized ROI of about 14.47% a year.

Last updated: 2 November 2026 ·How we calculate this: ROI and annualized ROI formulas

Table of Contents

How This ROI Calculator Works

ROI shows how much you gained or lost compared with what you put in. Enter what you invested and what you got back. Add the time held to compare investments of different lengths.

Quick explanation: ROI = gain ÷ cost × 100.

  • Simple ROI: the total return over the whole period.
  • Annualized ROI: the average yearly return, with compounding.
  • Negative ROI: means you lost money.

How to Use the ROI Calculator

  1. Enter the total amount you invested, including fees and extra costs.
  2. Enter the total amount you got back, including any income such as dividends or rent.
  3. Optionally, enter how many years you held it. Part years such as 1.5 are fine.
  4. Press Calculate.
  5. Read the ROI, the gain or loss, and the annualized ROI.

Core Formulas

  • Gain: amount returned − amount invested
  • ROI: gain ÷ amount invested × 100
  • Annualized ROI: ((returned ÷ invested) ^ (1 ÷ years) − 1) × 100

Key Terms

  • Return on investment (ROI): the gain or loss compared with the amount invested, as a percentage.
  • Annualized ROI: the average yearly return with compounding, over the time held.
  • Net gain: the amount returned minus the amount invested.
  • Cost basis: the total you paid, including purchase costs.

Worked Example

You spend $2,000 on equipment for a side business and earn $2,800 from it over 18 months.

  • Gain = 2,800 − 2,000 = $800
  • ROI = 800 ÷ 2,000 × 100 = 40%
  • Annualized ROI = (1.4 ^ (1 ÷ 1.5) − 1) × 100 = 25.15% a year

Real-Life Examples

  • An ad campaign: spending $2,000 on ads that bring in $5,000 of profit before ad costs gives an ROI of (5,000 − 2,000) ÷ 2,000 = 150%.
  • A rental property: buying for $200,000, spending $20,000 on repairs, then selling for $250,000 after collecting $30,000 of net rent over 5 years gives a return of $280,000 on $220,000. That is a 27.27% ROI, or 4.94% a year.
  • A training course: a $1,500 course that leads to a $4,000 raise in the first year has a first-year ROI of about 167%.
  • Comparing two stocks: one gained 40% in 2 years and another 60% in 4 years. Annualized, that is 18.32% and 12.47% a year, so the first did better.

ROI vs Profit Margin

  • ROI: gain compared with the money you put in.
  • Profit margin: profit compared with the revenue from sales.
  • Use ROI for: judging whether an investment or project was worth the money.
  • Use margin for: judging how much of each sale you keep. Try our Profit Margin Calculator.

Annualized ROI by Total ROI and Years

Average yearly return with compounding.

Total ROI2 years5 years10 years
10%4.88%1.92%0.96%
25%11.80%4.56%2.26%
50%22.47%8.45%4.14%
100%41.42%14.87%7.18%
200%73.21%24.57%11.61%

Limits of ROI

  • Time: simple ROI ignores how long it took, so use annualized ROI to compare.
  • Risk: two investments with the same ROI can carry very different risk.
  • Hidden costs: fees, taxes and your own time lower the real return.
  • Growth rate: for a start and end value, try our CAGR calculator.

Common Mistakes to Avoid

  • Leaving out costs. Fees, taxes, repairs and your time all lower the real ROI.
  • Comparing ROIs over different periods. Use annualized ROI instead.
  • Counting expected gains as real. ROI is only known once you sell or receive the money.
  • Ignoring risk. A high ROI may come with a high chance of loss.
  • Forgetting inflation. A 10% gain over 5 years may be a loss in real terms.

Frequently Asked Questions

Subtract the amount invested from the amount returned, divide by the amount invested, and multiply by 100.

It depends on the risk and time. Compare it with other options over the same period.

The average yearly return that would turn your investment into the final amount, with compounding.

Yes. A negative ROI means you got back less than you put in.

Include the price and all extra costs, such as fees, shipping or repairs.

Add the sale price and the net rent you collected, subtract the purchase price and all costs, then divide by the total you put in.

It varies widely by industry and risk. Compare your ROI with other ways you could use the same money, such as paying off debt or investing in a fund.

Subtract the marketing cost from the profit it brought in, then divide by the cost. Count only the extra profit the campaign caused.

For a true picture, yes. Subtract any tax you pay on the gain from the amount returned.

No. Yield is usually yearly income, such as dividends or rent, compared with the price. ROI includes the change in value as well.

References & Sources

SourceUsed ForLink
Investopedia, Return on Investment (ROI) ROI definition and examples. https://www.investopedia.com/terms/r/returnoninvestment.asp
Wikipedia, Return on investment ROI and its limits. https://en.wikipedia.org/wiki/Return_on_investment