ROI Calculator
See your total ROI, net profit, and annualized return from an investment's cost and final value.
Example
You invest $1,000 and it grows to $1,500 over 2 years.
Net profit = $1,500 − $1,000 = $500. ROI = $500 ÷ $1,000 × 100 = 50%. Annualized ROI = (1.5^(1/2) − 1) × 100 = 22.47% per year.
How it works
Enter the total amount invested, the final value (or amount returned), and the holding period in years. ROI is (final value − cost) ÷ cost × 100, and annualized ROI compounds that return over the holding period.
Good to know
This ROI Calculator turns three inputs — the amount you put in, what the position is now worth, and how long you held it — into three readouts: total return on investment as a percentage, your net dollar profit, and an annualized ROI. It's aimed at anyone comparing the outcome of an investment, a side project, a marketing spend, or a property flip, where you know the money in and the money out but want the percentages spelled out.
Reach for it when you're sizing up a past or hypothetical result rather than projecting future cash flows. Because the total ROI figure ignores time, two deals can show the same 50% return while one took six months and the other took six years. The annualized number is what makes those two comparable: it restates the gain as a single compounded per-year rate, so a quick win and a slow grind line up on the same scale.
Read the result from the top down. The big percentage is total ROI; a negative value means you ended below cost. Net profit is the raw dollar gain (final value minus what you invested), and the two bars give a quick visual sense of how large the profit is relative to the invested base. Annualized ROI sits beside them — if it's well below the total ROI, the holding period was long; if it's higher, you compounded the gain quickly.
One caveat worth keeping in mind: every figure here is gross. The tool does not deduct taxes, transaction fees, management costs, or inflation, and it assumes a single lump sum in and out rather than contributions added over time. For a fairer picture, subtract those costs from your final value before entering it, and remember the annualized rate assumes the return compounded smoothly even if the real path was bumpy.
Frequently asked questions
What is the difference between ROI and annualized ROI?
Total ROI measures the overall percentage gain across the entire holding period, while annualized ROI converts that into an equivalent per-year compounded rate. A 50% total ROI over 2 years equals about 22.47% annualized, which lets you compare investments held for different lengths of time.
How is net profit calculated here?
Net profit is simply the final value minus the amount invested (gain − cost). It does not subtract taxes, fees, or inflation, so treat it as a gross figure before those costs are applied.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser; nothing is uploaded.
Is this financial advice?
No. These are educational estimates — consult a qualified financial professional before making decisions.
People also ask
What is a good ROI percentage?
There is no universal benchmark because it depends on the asset, risk level, and time frame. Investors often compare a result against alternatives like a broad stock index or a savings rate, and the same ROI looks very different over one year versus ten.
How do I calculate ROI if the holding period is less than a year?
Enter the period as a fraction of a year, such as 0.5 for six months or 0.25 for three months. The annualized ROI will then scale a short-term gain up to a full-year equivalent, which can make small gains look large.
Can ROI be negative?
Yes. If the final value is less than the amount invested, both the net profit and the ROI percentage are negative, indicating a loss on the position.
What's the difference between ROI and rate of return?
ROI is a general term for gain relative to cost expressed as a percentage, while rate of return usually implies a time-based measure. Annualized ROI is essentially a compounded annual rate of return derived from the total ROI.
Does this ROI calculator account for additional contributions made over time?
No. It assumes a single amount invested at the start and a single final value at the end. For multiple deposits or withdrawals over time, a measure like internal rate of return (IRR) or money-weighted return is more appropriate.
Why is my annualized ROI lower than my total ROI?
Annualized ROI spreads the total gain across more than one year of compounding, so for any holding period longer than a year it will be smaller than the total ROI. They are equal only when the period is exactly one year.
How is annualized ROI calculated?
It takes the ratio of final value to cost, raises it to the power of one divided by the number of years, subtracts one, and converts to a percentage. This expresses the total return as an equivalent steady compounded annual rate.
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