ROI Calculator

Return on investment (ROI) measures the profit or loss of an investment relative to its cost. It is calculated as (amount returned − total cost) ÷ total cost, expressed as a percentage. For example, $10,000 growing to $13,000 is a $3,000 profit — an ROI of 30%.

There is no single answer — it depends on the time it took, the risk taken, and the returns available elsewhere. A 30% ROI earned over one year is very different from 30% over ten. That is why this calculator also shows the annualized return, which makes different holding periods comparable.

ROI is the total profit relative to cost over the whole period and ignores how long it took. Annualized return (CAGR) is the equivalent smoothed rate per year. Two investments can share the same ROI while having very different annualized returns if they were held for different lengths of time.

Divide the final value by the initial investment, raise the result to the power of one over the number of years, then subtract one. For example, $10,000 growing to $16,000 over 5 years is a 60% ROI in total, but annualized it is (16,000 ÷ 10,000)^(1/5) − 1 ≈ 9.86% per year. This calculator reports both, so you can read the total and the per-year pace together. ROI and annualized ROI are equal only over a one-year holding period.

They overlap, but total return specifically separates price change from income like dividends, while ROI is a single net figure relative to cost. If you want to see how much of your return came from dividends versus price, use the Total Return Calculator.

This calculator treats the amount returned as everything you got back, so you can include dividends in it if you wish, but it does not model taxes or inflation. For return after rising prices, use the Inflation Calculator; taxes and fees would reduce your actual result.

Yes. If the amount returned is less than your total cost, ROI is negative — a loss. This calculator handles losses and shows the negative percentage clearly.