ROI Calculator
Calculate your Return on Investment instantly
📊 What Is ROI (Return on Investment)?
Return on Investment (ROI) is one of the most widely used financial metrics for evaluating the profitability of an investment. It measures the gain or loss generated relative to the amount of money invested. Expressed as a percentage, ROI makes it easy to compare the efficiency of different investments — whether you're analyzing stocks, real estate, a business venture, or even a marketing campaign.
ROI (%) = [(Amount Returned − Amount Invested) / Amount Invested] × 100
🧮 How to Use This ROI Calculator
Using the calculator above is straightforward. Follow these simple steps:
- Amount Invested: Enter the total initial amount you put into the investment (e.g., $5,000).
- Amount Returned: Enter the total amount you received back at the end of the investment period (e.g., $7,500).
- Investment Period (optional): If you want to calculate annualized ROI, enter the number of years. Leave blank for a simple total ROI calculation.
- Click "Calculate ROI" to see your results instantly — including net profit/loss, ROI percentage, and annualized ROI.
📈 Understanding Your Results
Once you hit calculate, the tool displays three key metrics:
- ROI %: The total percentage return. A positive number means profit; negative means loss.
- Net Profit / Loss: The absolute dollar amount you gained or lost.
- Annualized ROI: The average yearly return (CAGR), shown only when you provide the investment period. This helps compare investments of different durations.
🏠 Real-World ROI Examples
| Scenario | Invested | Returned | Period | ROI | Annualized |
|---|---|---|---|---|---|
| Stock Investment | $10,000 | $14,000 | 3 years | 40% | 11.87% |
| Real Estate Flip | $200,000 | $260,000 | 1 year | 30% | 30% |
| Business Venture | $50,000 | $35,000 | 2 years | -30% | -16.33% |
| Marketing Campaign | $5,000 | $22,500 | 0.5 years | 350% | N/A |
❓ Frequently Asked Questions
What is a good ROI?
A "good" ROI depends on the context. For low-risk investments like bonds, 3-6% is solid. For stocks, 7-10% annualized is the historical average. For startups or high-risk ventures, investors may target 20-30%+ to compensate for the risk.
Does ROI account for time?
Basic ROI does not factor in time. That's why this calculator also provides annualized ROI (CAGR) — it normalizes returns to a per-year basis, making it easy to compare a 2-year investment with a 10-year one.
What are the limitations of ROI?
ROI doesn't account for risk, inflation, taxes, or opportunity cost. It's a great starting metric but should be used alongside other analyses for major financial decisions.
Can ROI be negative?
Yes — a negative ROI means you lost money on the investment. The calculator will highlight this in red so you can quickly identify underperforming investments.
🚀 Why Use This ROI Calculator?
- 100% Free — no sign-ups, no hidden fees.
- Instant Results — get your ROI in real-time.
- Mobile-Friendly — works perfectly on phones and tablets.
- Privacy-Focused — all calculations happen in your browser; no data is sent anywhere.
- Professional-Grade — uses the same formulas financial analysts rely on.
