ROI Calculator
Calculate return on investment (ROI), annualized returns, and total gain or loss with this ROI calculator. Compare multiple investments side by side.
About ROI Calculator
ROI is one of the most common metrics for evaluating how well an investment performed. This calculator takes your initial cost and final value, computes the total and annualized return, and lets you compare multiple investments in one view.
How ROI Works
The basic formula is straightforward: (Final Value - Cost) / Cost x 100. If you bought something for $10,000 and sold it for $15,000, your ROI is 50%. This works for stocks, property, business investments, or any scenario where you put money in and got money out. Results are colour-coded green for gains and red for losses.
Annualized Returns
Total ROI doesn't account for time. A 100% return sounds great, but it matters a lot whether that took 2 years or 20. Enter the time period to see the annualized ROI, calculated as ((1 + ROI)^(1/years) - 1) x 100. This gives you the equivalent annual growth rate, making it easy to compare against benchmarks like average stock market returns.
Comparing Investments
Click the add button to enter multiple investments. The calculator builds a comparison table and bar chart showing each one's ROI side by side, highlighting the best and worst performers. This is useful when deciding between opportunities or reviewing a portfolio's historical performance. For projecting future growth with regular deposits, check the Compound Interest Calculator. To work out profit margins on products or services, the Profit Margin Calculator covers that angle.
Frequently Asked Questions
What is ROI and how is it calculated?
ROI stands for Return on Investment. It measures the percentage gain or loss on an investment relative to its cost. The formula is (Final Value - Cost) / Cost x 100. An ROI of 50% means you earned half of your initial investment as profit.
What is annualized ROI and why does it matter?
Annualized ROI converts the total return into a yearly rate, making it easier to compare investments held for different lengths of time. A 50% total return over 5 years is about 8.4% per year, while the same return over 2 years is about 22.5% per year. The formula is ((1 + ROI)^(1/years) - 1) x 100.
Can ROI be negative?
Yes. A negative ROI means you lost money on the investment. If you invested $10,000 and the final value is $8,000, your ROI is -20%. The calculator shows negative returns in red so they stand out.
How do I compare multiple investments fairly?
Use the comparison feature to add multiple investments. Look at annualized ROI rather than total ROI when investments were held for different time periods. A 30% return over 1 year is better than a 40% return over 5 years on an annualized basis.
Does this calculator account for additional contributions?
This calculator measures the return on a single initial investment. If you made regular contributions over time, the Investment Return Calculator is a better fit since it handles monthly deposits and compounding.