ROI Calculator

Calculate total and annualized return on investment.

Compare total profit, total return, and compound annual growth.

$
$
years

Result

Investment gain$5,000.00
Return on investment50.0000%
Annualized return8.4472%

How to use this calculator

Compare total profit, total return, and compound annual growth. Enter amounts in the units shown, select the applicable options, and click Calculate. Use Reset to restore the starting values.

Calculation formula

ROI = (returned − invested)/invested; annualized = (returned/invested)^(1/years) − 1.

Assumptions and accuracy

Review timing, rates, fees and result notes when comparing scenarios. Future returns and rates are assumptions rather than guaranteed outcomes. Monetary display follows the currency’s precision; intermediate calculations retain additional digits.

Choose what to calculate

Return on investment calculator

Calculate total and annualized investment return using investment costs, proceeds and holding dates. Intermediate cash flows require an IRR-style calculation.

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ROI calculator with investment dates

Calculate total and annualized investment return using investment costs, proceeds and holding dates. Intermediate cash flows require an IRR-style calculation.

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Understanding this calculation

Calculate total ROI and an annualized return from the amount invested, amount returned and holding period. The total return and annualized rate answer different questions.

Worked examples

Calculate ROI from a 1,000 investment

Illustrative inputs are specified in the steps below; the example link loads the complete settings. Unmentioned settings use the linked defaults.

  1. Net gain is 1,200 − 1,000 = 200. ROI is 200 / 1,000 × 100 = 20%; at a one-year holding period the annualized rate is also 20%.

Return on investment: 20%.

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Common questions

Is a 50% ROI the same as 50% per year?

Only for a one-year period under the stated convention. A multi-year total return must be annualized to compare horizons.

Should fees be included in ROI?

Include them consistently in the money invested or net proceeds. Excluding material costs can overstate the gain.

Scope and assumptions

The simple model treats the entered investment and return as endpoints. Use a cash-flow method for multiple dated deposits and withdrawals.

Sources

Calculation methods and formulas

Use Investment Length

Compare total profit, total return, and compound annual growth.

ROI = (returned − invested)/invested; annualized = (returned/invested)^(1/years) − 1.

Use Dates

Compare total profit, total return, and compound annual growth.

ROI = (returned − invested)/invested; annualized = (returned/invested)^(1/years) − 1.

See our calculation methodology and review status for data versions, rounding and validation limitations.