ROI Calculator
Return on investment and annualised ROI, comparing up to three investments.
About this tool
Enter what you invested, what it returned or is worth now, any fees, any income received along the way, and how long you held it. Each column shows ROI, the gain or loss, the money multiple and the annualised ROI; the summary names the best annualised return of up to three options.
Why annualised ROI is the fair comparison
ROI is the gain divided by the cost: (amount returned + income β amount invested β costs) Γ· (amount invested + costs). It answers βhow much did I make relative to what I put inβ, which makes it the standard way to judge a stock, a property, a marketing campaign or new equipment. Its weakness is time: 35% over three years and 20% over eighteen months look like a clear win for the first, but annualised they are about 10.5% and 12.9% a year. Annualised ROI β (1 + ROI)^(1/years) β 1 β is the steady yearly rate that compounds to the same result, so it puts different holding periods on an equal footing. Honest notes: ROI ignores risk, ignores when cash came in during the period, and does not deduct tax or inflation unless you include them in costs. For uneven cash flows use the NPV and IRR calculator; for a growth rate between two values, the CAGR calculator; to see real terms, the inflation calculator; and Margin vs markup: why 50% markup is 33% margin, and how to price from either explains the related pricing ratios. General information, not financial advice.
Frequently asked questions
How do you calculate ROI?
ROI = (gain β cost) Γ· cost Γ 100. Here gain is the amount returned plus any income, and cost is the amount invested plus fees. Invest 10,000, pay 250 in fees and get back 13,500: (13,500 β 10,250) Γ· 10,250 = 31.7%.
What is a good ROI?
It depends on risk and time. Compare against what the money could earn elsewhere: long-run stock markets have averaged roughly 7β10% a year before inflation, so annualised ROI is the number to compare.
What is the difference between ROI and annualised ROI?
ROI is the total return over the whole period; annualised ROI is the equivalent rate per year. Use annualised when holding periods differ.
Is my data saved?
No. Figures are calculated in your browser and nothing is stored or sent.