ROI Calculator
Calculate return on investment (ROI) as a percentage. Enter your initial cost and current or final value (gain). Optionally add years held for annualized ROI. ROI = (Gain − Cost) / Cost × 100.
ROI calculator
Result
What is this?
ROI (return on investment) measures profitability as a percentage. Formula: (Gain − Cost) / Cost × 100. Annualized ROI spreads the return over the holding period for comparison across different time spans. A 50% return over 5 years is very different from 50% over 1 year—annualizing makes them comparable. Enter your initial cost, current or final value, and optionally years held. The calculator shows both total ROI and annualized ROI. Use it to evaluate past investments or project future returns.
When to use
Use for stocks, real estate, business projects, or any investment. Example: $10k invested, now $12.5k = 25% ROI. Over 2 years = 12.5% annualized. Compare investments of different lengths. Investors evaluate portfolio performance. Business owners assess project returns. Compare a 2-year investment to a 5-year one fairly. Understand what your returns really mean. Essential for any investment decision. Annualized ROI is the key for apples-to-apples comparison.
How to use
ROI = (Gain − Cost) / Cost × 100. Annualized ROI = Total ROI ÷ Years held.
Example: $10,000 invested, now worth $12,500 → ROI = 25%. Over 2 years → 12.5% annualized.
Frequently asked questions
- ROI (Return on Investment) measures the profitability of an investment as a percentage. Formula: ROI = (Gain − Cost) / Cost × 100.
- A "good" ROI depends on the asset class and risk. Stocks historically average ~10% annually. Real estate, bonds, and other assets have different typical returns.
- Annualized ROI spreads the total return over the holding period. If you hold for 5 years and earn 50% total, annualized ROI is 50% ÷ 5 = 10% per year.