ROI Calculator
Calculate return on investment (ROI) to measure the profitability of your investments.
Investment Details
Results
Return on Investment (ROI)
50.00%
Tip: A positive ROI means the investment has generated more value than it cost. The annualized ROI helps compare investments with different time horizons.
About the ROI Calculator
Our free ROI (Return on Investment) calculator helps you measure the profitability of your investments. Whether you're evaluating stocks, real estate, business ventures, or any other investment, this tool calculates your return percentage, net profit, and annualized ROI. Simply enter your initial investment, final value, and time period to get comprehensive results.
Key Features
- Calculate ROI percentage for any investment
- See net profit or loss instantly
- Annualized ROI for comparing different time periods
- Return multiple (how many times your money grew)
- Works for stocks, real estate, business, and more
- No registration required - completely free
Frequently Asked Questions
What is ROI and how is it calculated?
ROI (Return on Investment) measures the profitability of an investment. It's calculated as: ROI = (Final Value - Initial Investment) / Initial Investment × 100. A positive ROI means profit, while negative means loss. For example, investing $1,000 that grows to $1,500 has an ROI of 50%.
What is annualized ROI and why is it important?
Annualized ROI converts the return to an annual equivalent, making it easier to compare investments with different time horizons. For example, a 20% return over 2 years has a higher annualized ROI than a 20% return over 5 years. The formula is: Annualized ROI = [(1 + ROI)^(1/years) - 1] × 100.
Is ROI the same as profit?
No, ROI is a percentage return, while profit is the absolute dollar amount. An investment could have a high ROI but low profit if the initial investment was small. Conversely, a large investment might have a modest ROI but significant profit in dollars.
What is a good ROI?
A good ROI depends on the investment type, risk level, and market conditions. Historically, the stock market averages 7-10% annually after inflation. Real estate often aims for 8-12%. Business investments might target 15-25%. Higher returns typically come with higher risk.
Can ROI be negative?
Yes, a negative ROI indicates that the investment lost money. For example, if you invest $10,000 and get back $8,000, your ROI is -20%. This means you lost 20% of your initial investment.
Why Use Our ROI Calculator?
Our roi calculator is designed to be accurate, easy to use, and completely free. Whether you're planning a project, making financial decisions, or just need quick calculations, our tool provides instant results you can rely on.
All calculations are performed locally in your browser, ensuring your data remains private and secure.