ROI Calculator

Enter the amount you invested and what it's worth now to get your ROI as a percentage and your net profit. Add a holding period to see the annualized return (CAGR) for fair comparison across investments.

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Enter the amounts and press Calculate ROI.

The ROI formula

Return on investment is the net gain divided by what you put in, as a percentage:

ROI = ( final value − amount invested ) ÷ amount invested × 100

A positive ROI means a profit; a negative one means a loss. ROI alone ignores how long the money was tied up, which is why the annualized figure matters.

Worked example

Invest $1,000, end with $1,500:

Net profit: 1,500 − 1,000 = $500.
ROI: 500 ÷ 1,000 × 100 = 50%.

Annualized ROI (CAGR)

A 50% return is impressive in one year but mediocre over ten. The annualized ROI, or compound annual growth rate, puts every investment on the same yearly footing:

annualized = ( final ÷ invested )1/years − 1

That same $1,000 → $1,500 over 3 years is an annualized return of about 14.47% — the rate that, compounded for three years, turns $1,000 into $1,500.

Tip: always compare investments on an annualized basis. A 30% total return over two years (14% annualized) beats a 25% return over three years (about 7.7% annualized).

Frequently asked questions

How do I calculate ROI?

Subtract the amount invested from the final value to get the net profit, divide by the amount invested, and multiply by 100. A $1,000 investment worth $1,500 has a 50% ROI.

What is annualized ROI?

Annualized ROI (the compound annual growth rate) is the yearly rate that would turn the starting amount into the ending amount over the holding period. It lets you compare investments held for different lengths of time.

Is a higher ROI always better?

Not without context. A high ROI over a long period can be worse than a smaller ROI earned quickly. Compare the annualized figures, and consider risk, since higher returns usually mean higher risk.

Does ROI include fees and taxes?

Basic ROI uses only the amounts you enter. For a true net return, use the after-fee, after-tax final value as the 'final value' so costs are reflected in the result.

MB
Mustafa Bilgic · Editor, Calcool
ROI and the compound annual growth rate (CAGR) are standard finance metrics. They measure return, not risk; a complete assessment also weighs volatility and time. For investing basics, see the SEC's Investor.gov.

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