ROI Calculator
Calculate return on investment as a total percentage and an annualised rate.
Content updated July 1, 2026
Total ROI measures the whole gain; annualised return shows the equivalent yearly rate, which is better for comparing investments of different lengths.
Return on investment (ROI) tells you how much you gained relative to what you put in, as a percentage. It's the universal yardstick for comparing everything from stocks and property to a marketing campaign or a side project. This calculator gives you both the total ROI and the annualised return.
Enter the amount you invested and its final value; add the holding period to see the equivalent yearly rate, which lets you compare investments that ran for different lengths of time.
The ROI formula
ROI = (Final value − Cost) ÷ Cost × 100 · Annualised = (Final ÷ Cost)^(1 ÷ years) − 1Final value = what the investment is now worth · Cost = the amount originally invested · years = the holding period. The first gives total percentage return; the second the equivalent yearly rate.
Worked example
Invest $10,000 and sell for $13,500. ROI = (13,500 − 10,000) ÷ 10,000 × 100 = 35%. If that took 3 years, the annualised return is (13,500 ÷ 10,000)^(1÷3) − 1 ≈ 10.5% a year.
Total ROI vs. annualised return
Total ROI is simply the profit divided by the cost: a $10,000 investment worth $13,500 has a 35% ROI. But a 35% gain over one year is very different from 35% over ten years.
Annualised return solves this by expressing the result as a steady yearly rate — the fairest way to compare opportunities of different durations. This calculator shows both so you get the full picture.
Frequently asked questions
▶How do I calculate ROI?
Subtract the cost from the final value to get your profit, divide by the cost, and multiply by 100. This tool does it automatically and also annualises the return.
▶What is a good ROI?
It depends on the investment and the risk. Broad stock markets have historically averaged high single digits annually over the long run; higher returns usually mean higher risk.
▶What's the difference between ROI and annualised return?
ROI is the total percentage gain over the whole holding period; annualised return spreads that into an equivalent yearly rate. A 50% total ROI over 5 years is only about 8.4% a year.
▶Can ROI be negative?
Yes. If the final value is less than what you invested, your ROI is negative — a loss. For example, $10,000 falling to $8,000 is a −20% ROI.
▶Does ROI account for the time an investment is held?
Basic ROI does not — it only compares cost to final value. That's why comparing investments of different lengths needs the annualised return, which this calculator also shows.
▶Should ROI include fees and taxes?
For a true picture, yes — subtract transaction fees, management charges and any tax from your gain before dividing by the cost. Headline ROI often ignores these, which flatters the result.
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Open calculator →Disclaimer: ROI Calculator results are estimates for general information and education only, and are not financial, tax, legal or medical advice. Verify important decisions with a qualified professional.