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ROI Calculator

Enter what you put in, what you got back and how long you held it. You get the total return and the yearly rate that produces it.

$
$
years
Return on investment50%
Profit$5,000
Annualised return10.67%

Example

Turning $10,000 into $15,000 is a profit of $5,000, a return of 50%. Over 4 years that is 10.67% a year.

How the roi calculator works

Return on investment is the gain divided by the cost: ROI = (returned − invested) / invested. It says how much you made for every unit of money you put in.

ROI ignores time, so the calculator also gives the annualised return: (returned / invested)1/years − 1. That makes investments held for different lengths of time comparable.

Include every cost in the amount invested, such as fees and taxes, and every payment received in the amount returned, such as dividends or rent.

Common questions

What is a good ROI?

It depends on the risk and the time taken. A 50% return in one year is very different from 50% in ten. Compare annualised returns, and compare with what a low-risk alternative would have paid.

Why is the annualised return lower than ROI divided by years?

Because returns compound. A steady yearly rate builds on earlier gains, so a smaller rate reaches the same total.

Can ROI be negative?

Yes. If you get back less than you invested, the ROI is negative and the calculator shows a loss.

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