ROI Calculator
Calculate your return on investment instantly. Enter your initial investment and final value to see ROI percentage, net profit, and annualized ROI.
Investment Details
How to Use
Simple ROI: Enter your initial investment amount and the final value (what you got back). The calculator applies the formula: ROI = ((Final Value - Initial Investment) / Initial Investment) x 100
Annualized ROI: Add the investment duration in years to see the equivalent annual return. This uses the compound formula: Annualized ROI = ((Final / Initial)^(1/years) - 1) x 100
When to use: Compare profitability across different investments, evaluate business decisions, or assess the performance of stocks, real estate, or any asset over time.
ROI Percentage
Net Profit / Loss
Annualized ROI
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Frequently Asked Questions
What is ROI and how is it calculated?
ROI (Return on Investment) measures the profitability of an investment as a percentage. It is calculated using the formula: ROI = ((Final Value - Initial Investment) / Initial Investment) x 100. For example, if you invest $1,000 and it grows to $1,500, your ROI is 50%.
What is annualized ROI?
Annualized ROI adjusts the total return to reflect a yearly rate, making it easier to compare investments of different durations. It is calculated as: ((Final Value / Initial Investment)^(1/years) - 1) x 100. This gives you the equivalent annual return rate.
What is a good ROI percentage?
A good ROI depends on the type of investment and its risk level. For stock markets, a 7-10% annual return is historically average. Real estate typically targets 8-12%. High-risk investments may aim for 20% or more. Any positive ROI means your investment gained value.
Can ROI be negative?
Yes. A negative ROI means you lost money on the investment. For example, if you invested $1,000 and the final value is $800, the ROI is -20%. This calculator clearly indicates negative returns with red highlighting so you can quickly assess losses.