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ROI Calculator

Calculate your Return on Investment. Instantly measure the profitability and annualized performance of any investment or business venture.

Investment Details
Enter your initial cost and final return amount.
$
$
years

Optional. Required to calculate Annualized ROI.

Total Return on Investment
+25.00%
Net Profit
+$2,500
Annualized ROI
+25.00%
Average return per year
Table of Contents
Understanding Return on Investment

ROI (Return on Investment) is a simple ratio that measures the profitability of an investment relative to its initial cost. It is universally used in business and investing to compare the efficiency of different investments.

Total ROI vs Annualized ROI

While total ROI is useful, it can be extremely deceptive because it does not account for the time it took to achieve that return.

  • The Problem: A 50% Total ROI sounds fantastic. But if it took you 10 years to achieve that 50% return, your money was actually growing very slowly.
  • The Solution: Annualized ROI solves this. It calculates what your average return was per year, allowing you to accurately compare a 3-month investment against a 10-year investment on a level playing field.
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