ROI Calculator
Measure how much an investment earned, as a percentage and per year.
What ROI tells you
Return on investment compares the profit you made with the money you put in. It is a quick way to compare different investments, a business project or a purchase such as equipment.
Two numbers, two jobs
ROI = (final value − amount invested) ÷ amount invested × 100. It ignores time, so a 35% return in one year and in ten years look the same. The annualized figure fixes that by showing the equivalent yearly growth rate: (final ÷ invested)1 ÷ years − 1.
Example
You invest 10,000 and it becomes 13,500 after 3 years. The profit is 3,500, the ROI is 35%, and the annualized ROI is about 10.5% a year.
Remember to include fees, taxes and any extra money you added along the way, or the result will look better than the real outcome.
Frequently asked questions
Is a high ROI always good?
Not necessarily. A high ROI over a long time can still be a weak yearly return, and higher returns usually carry higher risk.
What if I added money during the investment?
This simple version assumes one starting amount. For regular deposits, use the compound interest calculator to model the growth.
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