ROI Calculator
Find the return on investment for any project, stock or property. Enter what you put in, what you got back and how long it took to see the total ROI and the annualized ROI, then compare up to three scenarios.
Scenario comparison
| Scenario | Invested | Returned | Gain | Period | ROI | Annualized |
|---|
Estimates only, not financial advice. ROI ignores the timing of extra cash flows, taxes and inflation. Annualized figures for periods under a year are extrapolated and can look extreme.
How to use the ROI Calculator
- Name scenario A and enter the amount invested and the final amount returned, including any income it paid.
- Enter the period you held the investment in years, months or days.
- Tick scenarios B and C to compare other options, such as a property, a fund or a business idea.
- Press Calculate ROI to see each total ROI, annualized ROI and gain or loss.
- Compare the table, chart and growth path. The best annualized return is highlighted.
ROI and annualized ROI formulas
- Gain = amount returned − amount invested
- ROI = gain ÷ amount invested × 100
- Annualized ROI = ((amount returned ÷ amount invested)1 ÷ years − 1) × 100
Months are converted to years by dividing by 12, and days by dividing by 365.
Worked comparison
| Scenario | Invested | Returned | Period | ROI | Annualized |
|---|---|---|---|---|---|
| Stock portfolio | $10,000 | $15,000 | 3 years | 50.00% | 14.47% |
| Rental property | $5,000 | $6,000 | 18 months | 20.00% | 12.92% |
| Side business | $8,000 | $9,200 | 1 year | 15.00% | 15.00% |
| Long hold | $10,000 | $15,000 | 5 years | 50.00% | 8.45% |
The side business has the lowest total ROI but the highest annualized return, which is why the time period matters so much.
What to count in an ROI calculation
- Amount invested: the purchase price plus fees, commissions, closing costs and any money you put in later.
- Amount returned: the sale price or current value plus dividends, rent or other income received, minus selling costs.
- For marketing ROI, use the profit (not revenue) generated by the campaign as the return on the campaign cost.
- If cash goes in and out many times, a money-weighted return (IRR) is more accurate than simple ROI.
Frequently asked questions
What is the ROI formula?
ROI = (amount returned − amount invested) ÷ amount invested × 100. If you invest $10,000 and get back $15,000, the gain is $5,000 and the ROI is 50%.
What is annualized ROI?
Annualized ROI spreads the return evenly over each year, with compounding: (amount returned ÷ amount invested)^(1 ÷ years) − 1. A 50% ROI over 3 years is about 14.47% a year. It is the same idea as CAGR and lets you compare investments held for different lengths of time.
Why compare annualized ROI instead of total ROI?
Total ROI ignores time. A 20% return in 18 months (12.92% a year) beats a 50% return over 5 years (8.45% a year), even though 50% looks bigger. Annualizing puts both on the same footing.
Can ROI be negative?
Yes. If you get back less than you put in, the ROI is negative. If you lose everything, ROI is −100%, and so is the annualized ROI.
Why does a short period give a huge annualized ROI?
Annualizing a short gain assumes you could repeat it all year. Earning 5% in one month annualizes to about 79.6%, which is rarely realistic. The calculator marks periods under one year as extrapolated.
What does this calculator leave out?
It uses only the starting and ending amounts. Extra deposits or withdrawals during the period, taxes, fees you did not include and inflation are not modeled. Results are estimates, not financial advice.