Tools · Calculators · Finance Last update: Nov 6, 2026

ROI Calculator

Calculate the return on investment of any project: how much you gained as a percentage of what you put in — and per year, if you know how long it took.

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Type any value — results update as you type.

More ROI calculators

Focused versions for specific kinds of investments.

What is ROI?

Return on investment (ROI) measures how much an investment earned compared with what it cost. It is expressed as a percentage, so you can compare investments of very different sizes: a 20% ROI means you got back the money you put in plus a fifth more.

ROI formula

ROI = (amount returned − amount invested) ÷ amount invested × 100

Example: you invest 10,000 and end up with 14,500. The net profit is 4,500, so ROI = 4,500 ÷ 10,000 × 100 = 45%.

ROI per year (annualized ROI)

Plain ROI ignores time. A 45% return over three years is far less impressive than 45% in one year. Annualized ROI turns the total return into an equivalent yearly rate, compounding included:

annualized ROI = ((amount returned ÷ amount invested)^(1 ÷ years) − 1) × 100

For the example above held for three years: (14,500 ÷ 10,000)^(1/3) − 1 = 13.19% per year. Enter an investment length in the calculator to see it next to the total ROI.

What to include in the cost

  • All money you put in — the purchase price plus fees, commissions and setup costs.
  • Ongoing costs — maintenance, subscriptions or salaries that the investment needed.
  • What you got back — sale proceeds plus any income received along the way (dividends, rent, extra revenue).

Limits of ROI

ROI does not account for risk, for the timing of cash flows within the period, or for what else you could have done with the money. Use it to compare similar options, and pair it with annualized ROI when holding periods differ.

Frequently asked questions

How do I calculate ROI?

Subtract the amount invested from the amount returned, divide by the amount invested and multiply by 100.

What is a good ROI?

It depends on the risk and the time involved. Broad stock market indices have historically returned around 7–10% per year before inflation, so many investors use that as a benchmark for annualized ROI.

Can ROI be negative?

Yes. If you get back less than you invested, ROI is negative — for example −20% means you lost a fifth of the money.

What is the difference between ROI and annualized ROI?

ROI is the total return over the whole period. Annualized ROI converts it into a yearly rate, so investments held for different lengths of time can be compared.