ROI Calculator

Decimals are allowed, for example 1.5 years.
Return on Investment (ROI)
Investment Gain / Loss
Annualized ROI
Value Multiple
Investment Period
Calculation
Estimate only, not financial advice. Standard ROI does not account for taxes, fees, inflation, risk, or multiple cash flows unless those effects are already reflected in the values entered.

What This Tool Does

This ROI calculator finds the percentage return on an investment — how much you gained relative to what you put in — and can also calculate an annualized ROI when you provide the investment's time period.

You can also use this FYERS Brokerage Calculator.

How It's Calculated

ROI = (Gain from Investment − Cost of Investment) ÷ Cost of Investment

Worked example: $5,000 invested, $8,500 returned, held for 3 years.

  • Gain: 8,500 − 5,000 = $3,500
  • ROI: 3,500 ÷ 5,000 = 70%

Since ROI alone doesn't account for how long the investment was held, annualized ROI converts it into a yearly equivalent rate:

Annualized ROI = (1 + ROI)^(1/years) − 1

  • (1.70)^(1/3) − 1 ≈ 19.34%

That 19.34% figure is what makes this investment comparable to others held for different lengths of time.

Edge Cases and Special Rules

  • ROI has no built-in timeframe: A 100% ROI over 1 year is a very different result from a 100% ROI over 20 years — this is exactly why annualized ROI exists, to make returns comparable regardless of holding period.
  • "Cost" and "gain" aren't always defined the same way: One investor might include taxes, fees, and maintenance costs in their ROI calculation; another might only use the purchase price. This means ROI figures from different sources aren't always directly comparable unless the methodology is stated.
  • ROI can be negative: If an investment lost value, the gain figure is negative, producing a negative ROI.
  • Real estate and business ROI are especially methodology-dependent: Costs like property taxes, insurance, renovation expenses, and ongoing maintenance can be included or excluded depending on the investor, which significantly changes the resulting figure.

ROI vs. Rate of Interest (on a Loan)

These get confused, especially since "ROI" is sometimes used informally to mean a loan's interest rate. They're unrelated calculations. ROI measures the profitability of an investment — money returned relative to money put in. A loan's rate of interest measures the cost of borrowing money — what you pay a lender, calculated through an EMI formula rather than an investment gain/cost ratio. If you're trying to work out a loan's interest cost or monthly payment, you'll want a dedicated EMI or loan interest calculator, not this ROI calculator — the two serve entirely different purposes.

Who Uses This

  • Investors comparing returns across different assets — stocks, real estate, business ventures
  • Business owners evaluating the profitability of a specific investment decision
  • Marketers estimating returns on advertising or campaign spend
  • Anyone wanting to understand historical investment performance in percentage terms

ROI vs. Annualized ROI

These answer different questions about the same investment. ROI is the total percentage return over whatever period the investment was actually held, with no adjustment for time. Annualized ROI converts that total return into an equivalent yearly rate, which is what makes it possible to fairly compare a 2-year investment against a 10-year one. When comparing two different investment opportunities, annualized ROI is usually the more meaningful figure to look at.

FAQ

What is the formula for ROI?

(Gain from Investment − Cost of Investment) ÷ Cost of Investment, expressed as a percentage.

What's the difference between ROI and annualized ROI?

ROI is the total return over the holding period; annualized ROI converts that into a yearly rate for fair comparison across different time periods.

Is ROI the same as the rate of interest on a loan?

No, ROI measures investment profitability, while a loan's interest rate measures borrowing cost, calculated through a completely different formula.

Can ROI be negative?

Yes, if an investment's value decreased, the resulting ROI is negative.

Does ROI automatically account for costs like taxes and maintenance?

Not automatically, it depends entirely on what you include in your "cost" figure, which is why methodology varies between investors.

Try It Above

Enter your amount invested, amount returned, and investment dates in the ROI calculator above to get your ROI and annualized ROI instantly. Results are for general calculation purposes only.