CalcVerse

ROI Calculator

ROI (return on investment) is the gain or loss on an investment relative to what it cost. Annualized ROI spreads that return evenly over the years you held it, so different periods can be compared.

  • Last updated
  • Formula tested against reference values

Your numbers

Result

Return on investment
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Calculating…

Gain or loss
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Annualized ROI
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How to use this calculator

  1. Enter or choose amount invested.
  2. Enter or choose amount returned (final value).
  3. Enter or choose holding period (optional).
  4. The return on investment updates as you type. Use Copy result or Share to keep it.

Formula

ROI=Return−InvestedInvested×100

ROI % = (Return − Invested) ÷ Invested × 100; Annualized = ((Return ÷ Invested)^(1 ÷ years) − 1) × 100

Invested
total cost of the investment
Return
final value or total received

Worked example

  1. Gain = 1,500 − 1,000 = 500.
  2. ROI = 500 ÷ 1,000 × 100 = 50%.
  3. Annualized = (1.5^(1/2) − 1) × 100 ≈ 22.47% a year.

A 50% return over two years is about 22.47% a year, not 25%, because returns compound.

What the result means

Plain ROI ignores time; a 50% return over two years and over ten years are very different. Use annualized ROI to compare investments of different lengths.

Assumptions and limits

  • All money is invested at the start and returned at the end.
  • With deposits or withdrawals along the way, use an internal rate of return (IRR) calculation instead.

Questions

Can ROI be negative?

Yes. If you get back less than you invested, ROI is negative. Getting back 800 on 1,000 is −20%.

Please note: Returns are illustrations at a constant rate, not predictions or guarantees. Investments can lose value. This is not investment advice.