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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.

Core Formulas

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

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

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.

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.

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