ROI Calculator
Calculate your return on investment — enter the amount invested and the amount returned (and an optional holding period) to see your ROI percentage, net profit and annualized return.
How return on investment works
ROI measures how much you made relative to what you put in: net profit divided by cost, as a percentage. Turning $10,000 into $13,000 is a 30% ROI. It’s a quick, universal way to compare very different investments — a marketing campaign, a rental property, a course — on the same scale.
Why annualized ROI matters
Plain ROI ignores time, so a 30% return looks identical whether it took one year or ten. Enter a holding period above and the calculator also shows the annualized ROI — the average yearly rate — which is the fair way to compare returns earned over different spans. To project compounding growth over time, use the dividend calculator or rate of change calculator.
Frequently asked questions
How do I calculate ROI?
ROI is the net profit divided by the cost, as a percentage: ROI = (amount returned − amount invested) ÷ amount invested × 100. For example, turning $10,000 into $13,000 is ($13,000 − $10,000) ÷ $10,000 × 100 = 30%. Enter your figures above for an instant result.
What is a good ROI?
It depends on the investment and the risk. As a benchmark, the stock market has historically averaged roughly 7–10% a year. A “good” ROI beats what you could earn elsewhere for similar risk — and looking at the annualized figure makes returns over different time spans comparable.
What is annualized ROI?
Annualized ROI converts a total return into an average yearly rate, so you can compare investments held for different lengths of time. A 30% total return over three years is about 9.1% per year. Enter a holding period above to see the annualized figure.
Does ROI account for time?
Basic ROI does not — it just compares money in to money out. That is why a holding period matters: a 30% return is excellent in one year but mediocre over ten. Use the annualized ROI for a time-aware comparison.