ROI Calculator
Use this ROI calculator to find the return on investment for any amount you invested and the outcome you received.
Enter your investment cost and either the final value or the amount you gained or lost. Add an optional holding period in years and months to see the annualized ROI alongside your simple ROI.
This calculator is designed for straightforward ROI estimates. It does not include IRR, NPV, taxes, dividends, or recurring contributions.
Results are planning estimates only and do not include taxes, fees, inflation, or changing market returns.
How to use this calculator
- Enter the amount you originally invested in the Investment cost field.
- Choose what you know: select Final value if you know the ending value of the investment, or Gain or loss if you know how much you made or lost.
- Enter the final value or the gain and loss amount based on your selection.
- Optionally, enter a holding period in years and months to see the annualized ROI alongside your simple ROI.
- Review your ROI percentage, net gain or loss, final value, and annualized ROI if a holding period was entered.
To compare two investments on an equal footing, use the annualized ROI. A 30% ROI over 10 years is a very different rate of return than 30% over 1 year.
How it works
This calculator estimates return on investment (ROI) from the investment cost and either the final value or the gain and loss amount you enter.
It is designed for straightforward ROI estimates. Enter an optional holding period to also see the annualized ROI — the equivalent per-year growth rate that produces the same total return.
ROI formula
ROI = (Net gain ÷ Investment cost) × 100
Main inputs in the estimate
- Net gain
- Final value minus investment cost. Positive when the investment grew; negative when it lost value.
- Investment cost
- The original amount paid or invested, used as the denominator in the ROI formula.
- Annualized ROI
- Computed as (Final value ÷ Investment cost)^(1 ÷ years) − 1, only shown when a holding period is entered.
What the estimate assumes
- ROI is calculated from a single initial investment and a single final value. Multiple contributions, withdrawals, and cash flows are not supported.
- Annualized ROI uses the compound annual growth rate (CAGR) formula and is only shown when the holding period is greater than zero.
- Taxes, fees, inflation, dividends, and investment risk are not included in this estimate.
- A negative ROI means the final value is less than the investment cost — the investment lost value.
Assumptions and limitations
- ROI is calculated from the investment cost and either the final value or the gain or loss amount you enter.
- Annualized ROI uses the compound annual growth rate formula and is only shown when a holding period greater than zero is entered.
- This calculator does not include taxes on gains, transaction fees, advisory fees, fund expense ratios, inflation, dividends, recurring contributions, or multiple cash flows.
- A negative ROI means the final value is less than the investment cost — the investment lost value.
- Results are estimates only and do not constitute financial advice or a guarantee of future returns.
Example scenario
- Investment cost:
$10,000 - Final value:
$12,500 - Holding period:
2 years
With those inputs, the simple ROI is +25.00% and the net gain is +$2,500.00. Over 2 years, the annualized ROI is approximately +11.80% per year — the equivalent steady annual growth rate that produces the same total return.
Simple ROI vs. annualized ROI
Simple ROI shows your total percentage return over the full holding period, regardless of how long the investment took. It answers the question: "How much did I make or lose relative to what I put in?"
Annualized ROI (also called compound annual growth rate, or CAGR) converts that total return into an equivalent per-year rate. It answers: "What annual growth rate would produce the same total return over the same period?"
Use simple ROI for a quick snapshot of total performance. Use annualized ROI when comparing investments held for different amounts of time. A 50% total ROI over 10 years is roughly 4.1% per year — very different from a 50% ROI over 1 year.
What this calculator does not include
This ROI estimate covers only the values you enter. It does not account for:
- Taxes — capital gains taxes, income taxes on dividends, or tax-advantaged account treatment
- Fees — transaction costs, advisory fees, fund expense ratios, or platform fees
- Inflation — the real (inflation-adjusted) return may be lower than the nominal ROI shown
- Dividends and income — unless you add them to your final value manually
- Risk — a higher ROI does not mean a lower-risk investment
- Multiple contributions or withdrawals — this calculator assumes a single initial investment and a single ending value
Frequently asked questions
What is ROI?
ROI stands for return on investment. It measures how much you gained or lost relative to what you originally invested, expressed as a percentage. A positive ROI means the investment grew; a negative ROI means it lost value.
How is ROI calculated?
ROI is calculated by dividing your net gain by the investment cost and multiplying by 100.
ROI = (Net gain ÷ Investment cost) × 100
Net gain is the final value minus the investment cost. If the final value is lower than what you paid, the gain is negative and your ROI is negative.
What is annualized ROI?
Annualized ROI converts your total return into an equivalent per-year rate. This makes it easier to compare investments held for different lengths of time. It is also called CAGR (compound annual growth rate). The formula is (Final value ÷ Investment cost)^(1 ÷ years) − 1.
What is the difference between simple ROI and annualized ROI?
Simple ROI shows your total percentage return over the entire holding period. Annualized ROI shows the equivalent steady annual growth rate that would produce that same total return. A 44% total ROI over 5 years equals approximately 7.6% annualized, not 44% per year.
Can ROI be negative?
Yes. If your investment lost value — meaning the final value is lower than what you paid — your ROI is negative. A negative ROI is a loss, not a gain. This calculator shows the result as a negative percentage when that is the case.
Does this calculator include taxes, fees, or inflation?
No. This calculator shows a simple estimate based only on the values you enter. It does not account for capital gains taxes, transaction fees, advisory fees, fund expense ratios, inflation, or other costs that affect real investment outcomes.
Can I use this to compare different investments?
You can use the annualized ROI to compare investments held for different durations on a per-year basis. However, this calculator does not account for risk, liquidity, tax treatment, or the timing of cash flows, so treat any comparison as a rough planning reference only.
What if I only know the gain or loss amount, not the final value?
Switch the input mode to "Gain or loss." Enter a positive amount for a gain or a negative amount for a loss. The calculator will compute the final value and ROI from those inputs.
Related Calculators
Investment Calculator
Estimate how an investment could grow from a starting amount, recurring monthly investing, and an assumed long-term return.
Compound Interest Calculator
Estimate how savings or investments may grow over time from a starting balance, monthly contributions, and compound growth.
Retirement Savings Calculator
Estimate how much you could have saved by retirement based on your age, current retirement savings, monthly contributions, and expected annual return.
Savings Calculator
Estimate how your savings could grow from a starting amount, monthly contributions, time horizon, and an assumed annual rate.