ROI Calculator
Enter your initial cost and final value to see ROI %, net profit, and annualized return over your holding period — all in your browser.
ROI
50.00%
Net profit
$500.00
Annualized ROI
22.47%
Cost vs profit
| Category | Total cost versus net profit |
|---|---|
| Total cost | $1,000.00 |
| Net profit | $500.00 |
ROI = (final value − total cost) ÷ total cost. Annualized ROI converts it to an equivalent yearly rate.
How to use ROI Calculator
This ROI calculator measures the return on an investment as a percentage of its cost, so you can compare opportunities on a like-for-like basis. Enter what you paid, any extra costs and what the investment is now worth to see your net profit, your simple ROI and your annualized ROI. The annualized figure is especially useful because it converts returns from investments held for different lengths of time into a single comparable yearly rate.
- Enter the initial cost of the investment.
- Enter the final value or sale price.
- Add any extra costs such as fees, commissions or maintenance.
- Enter how many years you held the investment.
- Review ROI, net profit and annualized ROI.
Your data never leaves your device — 100% private processing.
How ROI and annualized ROI are calculated
Simple ROI is net profit divided by total cost, expressed as a percentage: ROI = (final value − total cost) ÷ total cost × 100. Total cost includes the purchase price plus any extra costs. Annualized ROI smooths that total return across the holding period using the formula (1 + ROI)^(1/years) − 1, which reveals the equivalent compound yearly rate. A 50% return over two years is only about 22.5% per year once compounding is accounted for.
| Total ROI | Years held | Annualized ROI |
|---|---|---|
| 50% | 1 | 50.0% |
| 50% | 2 | ~22.5% |
| 100% | 5 | ~14.9% |
Why ROI alone can mislead
ROI ignores time, risk and cash flow, so a high headline figure earned over many years may be worse than a smaller one earned quickly. It also does not account for inflation or the opportunity cost of tying up capital. Use annualized ROI to compare investments held for different periods, and always include every cost — fees, taxes and upkeep — so the return reflects what you actually pocketed rather than a flattering gross number.
Worked examples
Stock flip
Inputs: $1,000 → $1,500 · 2 yrs
Result: 50% ROI · ~22.5%/yr · $500 profit
With fees
Inputs: add $100 costs
Result: ~36.4% ROI · $400 profit
Glossary
- ROI
- Return on investment — net profit as a percentage of the amount invested.
- Annualized ROI
- The equivalent compound yearly return for an investment held over multiple years.
- Net profit
- Final value minus total cost, including fees and expenses.
- Cost basis
- The total amount invested, used as the denominator in ROI.
- Opportunity cost
- The return you give up by choosing one investment over another.
Related reading
Frequently Asked Questions
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Why use ROI Calculator?
- Transparent formulas so you understand every calculation
- Supports multiple currencies and regional tax rules
- Saves you from spreadsheet errors with validated inputs
- Shareable results for discussions with advisors or partners
Common use cases
- Calculate how long to pay off a credit card balance
- Model different mortgage scenarios before house hunting
- Forecast investment growth with compound interest
- Break even analysis for a new product or service
- Compare net salary after tax across different countries
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