ROI Calculator
Calculate return on investment, annualized ROI (CAGR), and net profit for any investment
Enter your initial investment and final value to calculate ROI.
What is ROI?
Return on Investment (ROI) is a performance metric used to evaluate the efficiency or profitability of an investment. It compares the net profit to the total amount invested, expressed as a percentage. A positive ROI means the investment gained value; a negative ROI means it lost value. ROI is widely used in business, finance, real estate, and marketing to compare the effectiveness of different investments.
How to Use the ROI Calculator
- Enter the initial investment amount
- Enter the final value of the investment
- Optionally add additional costs (fees, maintenance, etc.)
- Optionally enter the holding period to calculate annualized ROI (CAGR)
- See ROI percentage, net profit, and scenario table instantly
Features
- Simple ROI calculation: (Net Profit ÷ Total Invested) × 100
- Annualized ROI (CAGR) for multi-year investments
- Additional costs field for fees, commissions, and expenses
- Scenario table showing outcomes at ±10%, ±20%, ±50% returns
- Supports days, months, and years for holding period
Frequently Asked Questions
What is the ROI formula?
ROI = (Final Value − Total Invested) ÷ Total Invested × 100. For example, if you invest $10,000 and it grows to $13,000, your ROI is ($13,000 − $10,000) ÷ $10,000 × 100 = 30%.
What is annualized ROI (CAGR)?
Annualized ROI, also called CAGR (Compound Annual Growth Rate), normalizes returns over time so you can compare investments of different durations. Formula: CAGR = (Final ÷ Initial)^(1/years) − 1. A 30% ROI over 2 years equals ~14.0% annualized.
What counts as additional costs?
Any expense related to the investment: broker commissions, transaction fees, property taxes, maintenance costs, or management fees. Including these gives you a true picture of profitability rather than just the raw price change.