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ROI Calculator

Instantly calculate your Return on Investment. Check profit percentage and annualized growth for stocks, business, or real estate.

$
1K1M
$
1K1M

Total value of investment today

Years
1Y30Y

Total ROI

50%
Net Profit / Loss$500
Annualized Return (CAGR)8.45 %

Profit Analysis

Why Calculating ROI Matters

Return on Investment (ROI) is the ultimate metric for measuring success. Whether you sold a house, traded crypto, or ran a marketing campaign, ROI tells you exactly how much profit you made for every dollar spent.

However, Total ROI can be misleading without considering time. A 20% return in 1 month is phenomenal, but a 20% return over 10 years is poor. That is why this calculator also provides the Annualized ROI.

The ROI Formula

ROI% = (Net Profit / Cost) × 100
  • Net Profit = Final Value - Initial Cost
  • Cost = Initial Investment Amount
  • Annualized = [(Final / Initial)^(1/n) - 1] × 100

Evaluate Efficiency

ROI allows you to compare different investments (e.g., Stock A vs Stock B) to see which one worked harder for your money.

Time Factor

Using the 'Annualized Return' feature helps you benchmark your performance against standard indices like the S&P 500 (approx 10% annually).

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Frequently Asked Questions

What is ROI (Return on Investment)?
ROI is a performance measure used to evaluate the efficiency of an investment. It measures the amount of return on an investment relative to the investment's cost. The result is expressed as a percentage or a ratio.
How is ROI calculated?
The basic formula is: ROI = [(Final Value - Initial Investment) / Initial Investment] × 100. This gives you the total percentage growth (or loss).
What is Annualized ROI?
Annualized ROI (often called CAGR) tells you the yearly rate of return. A 50% total ROI over 5 years is very different from a 50% ROI in 1 year. Annualized ROI helps you compare investments with different time horizons.
Can ROI be negative?
Yes. If your Final Value is less than your Initial Investment, your Net Profit is negative, resulting in a negative ROI percentage. This indicates a loss.

Disclaimer: This tool provides estimates based on standard ROI formulas. It does not account for taxes, inflation, or transaction fees unless explicitly stated.