ROI Calculator

ROI Calculator: Return on Investment Percentage

Calculate your return on investment (ROI) in seconds. Enter the cost of your investment and either the final value or the gain; our free ROI calculator gives you the ROI as a percentage. Optional: add the time period to see annualized return. Use it for stocks, real estate, business projects, or any one-time investment. For multi-year growth with compounding, try our investment calculator or compound interest calculator; for how long it takes to recover your money, see our payback period calculator.

What Is ROI?

Return on Investment (ROI) is a measure of how much you gained or lost on an investment relative to what you put in. It is usually expressed as a percentage: ROI = (Gain − Cost) / Cost × 100. If you invest $1,000 and it grows to $1,200, your gain is $200 and ROI = (200/1000) × 100 = 20%. If it drops to $800, gain is −$200 and ROI = −20%. ROI does not account for how long you held the investment—a 20% return in one year is much better than 20% over ten years. For time-aware comparison, use annualized return or our investment calculator with a time horizon.

The ROI Formula

The basic formula is ROI = (Gain from Investment − Cost of Investment) / Cost of Investment × 100. You can also write this as ROI = (Final Value − Initial Cost) / Initial Cost × 100, since Gain = Final Value − Initial Cost. Example: Initial cost $5,000, final value $6,500. Gain = 6,500 − 5,000 = 1,500. ROI = (1,500/5,000) × 100 = 30%. Our calculator accepts either (cost and gain) or (cost and final value) and computes ROI. Make sure cost is positive; if you're analyzing a loss, the result will be negative. For investments with fees, use net cost (after fees) and net final value (after fees) so ROI reflects what you actually keep.

Annualized ROI

When you hold an investment for several years, total ROI doesn't tell you the per-year rate. Annualized return answers: what constant yearly return would have given the same result? Formula: Annualized ROI = ((1 + ROI/100)^(1/years) − 1) × 100. Example: 44% total return over 2 years. (1.44)^(1/2) − 1 ≈ 0.20, so about 20% per year. Our ROI calculator can show annualized ROI when you enter the number of years. Use it to compare investments with different holding periods—e.g. 30% in 1 year vs 30% in 5 years—the latter is much lower per year.

Using the ROI Calculator for Different Assets

Stocks: enter purchase price (including commissions if you want) as cost, current or sale price as final value. Real estate: use purchase price plus major costs as cost, and sale price minus selling costs as final value (or use estimates). Business project: initial outlay as cost, net profit or exit value as gain. Crypto, gold, or other assets: same idea—what you paid vs what you got (or current value). The calculator doesn't care about the asset type; it just applies the ROI formula. For recurring investments (e.g. monthly contributions), use our investment calculator or compound interest calculator instead, which handle multiple cash flows.

ROI and Fees

To get ROI that reflects your actual experience, use net numbers. Cost = amount you paid (e.g. purchase price + commission + other fees). Final value = amount you receive or could receive (e.g. sale price − commission − taxes if you're comparing after-tax). Including fees makes ROI slightly lower for gains and slightly worse for losses, but it's the fair comparison. Our calculator doesn't deduct fees automatically—you enter the cost and value you want. For rough comparison, using before-fee numbers is fine; for precise tracking, use net figures.

Negative ROI and Losses

When your investment loses value, gain is negative and ROI is negative. Example: cost $2,000, final value $1,600. Gain = −400, ROI = (−400/2000) × 100 = −20%. Our calculator supports this: enter cost and the lower final value, and you'll see the negative ROI. This helps you evaluate losses, compare bad vs good years, or see how much you'd need to gain to break even (e.g. after −20%, you need +25% on the remaining value to get back to initial capital). No sign-up required—just enter the numbers and copy the result if needed.

Limitations of ROI

ROI is simple and useful but has limits. It doesn't include time: 50% in one year is not the same as 50% in ten years. It doesn't include risk: two investments with the same ROI can have very different volatility. It doesn't include taxes or inflation unless you use after-tax and real (inflation-adjusted) values. For a single lump-sum investment and exit, ROI is perfect. For ongoing contributions, use our investment or compound interest calculator. For comparing projects with different timelines, add annualized ROI or use NPV/IRR in a spreadsheet; our payback period calculator helps with recovery time.

How to Use the ROI Calculator

Enter the initial cost (amount invested). Enter either the final value (what you have or got back) or the gain (profit or loss). If you want annualized ROI, enter the number of years you held the investment. Click Calculate. The tool shows ROI as a percentage and, if you entered years, annualized return. Use the copy button to save the result. For multiple investments, run the calculator once per investment and compare. Disclaimer: this is for education and planning; not financial advice. For major decisions, consult a financial advisor.

Common Mistakes

Using pre-fee cost but post-fee value (or vice versa) mixes apples and oranges—use both net or both gross. Forgetting that ROI is total return, not per year, can mislead when comparing to annual rates (e.g. 30% total over 3 years is about 9% per year). Confusing gain with final value: gain = final value − cost; our calculator accepts either. Entering zero or negative cost causes invalid results; the calculator validates inputs. For dividends or interest received, include them in the final value (e.g. current price + dividends received) so ROI reflects total return.

Related Tools

Investment Calculator – Growth with initial and optional recurring investment. Compound Interest Calculator – Interest over time. Payback Period Calculator – Time to recover investment. Finance calculators – Full list.

Conclusion

ROI is the standard way to express investment performance. Our free ROI calculator gives you the percentage return from cost and final value (or gain), with optional annualized return when you enter the holding period. Use it for any one-time investment, and pair it with our investment and payback period calculators for a fuller picture of your finances. This tool is for educational use; consult a professional for financial advice.