ROI Calculator
Measure how well an investment did. Enter how much you put in, how much you got back, and how long you held it to see the total return, the gain, and the annualized return.
Return on investment (ROI)
50.00%
Check the highlighted fields to see your result.
- Gain
- 500.00
- Annualized ROI
- 14.47%
Results are estimates for information only and do not constitute financial, medical, or legal advice.
What ROI measures
ROI (return on investment) shows how much you gained or lost compared with what you invested, as a percentage. It's a simple way to compare different investments, from stocks and real estate to a business project.
Because a 50% return over one year is much better than 50% over ten years, the calculator also shows theannualized ROI: the yearly rate that, compounded, would turn the initial amount into the final value over the same time.
The formulas
ROI = (final value − invested) ÷ invested × 100
Annualized ROI = ((final value ÷ invested)1 ÷ years − 1) × 100
Worked example
You invested 1,000 and after 3 years it's worth 1,500.
- Gain: 1,500 − 1,000 = 500
- ROI: 500 ÷ 1,000 = 0.50 = 50%
- Annualized: (1,500 ÷ 1,000)1 ÷ 3 − 1 = 1.50.3333 − 1 = 0.1447 = 14.47% a year
Frequently asked questions
What should I include in the final value?
Everything you got back from the investment: the sale price or current value, plus any dividends, interest, or rent you received, minus fees, commissions, and other costs you paid along the way.
What's the difference between ROI and annualized ROI?
ROI is the total return over the whole period. Annualized ROI spreads it into an equivalent yearly rate, so you can compare investments that lasted different lengths of time. A 50% return over 3 years is about 14.47% a year.
Does ROI take inflation into account?
No. It compares amounts of money without adjusting for inflation. If prices rose during the period, the real return is lower. You can estimate it with our inflation calculator.
What does a negative ROI mean?
That the investment lost money: you got back less than you put in. For example, investing 1,000 and getting back 800 is a −20% ROI.