ROI Calculator

Return on investment, net gain and annualized return.

ROI Calculator

Worked example result
Net gain / loss$500.00
ROI50.00%
Annualized return22.47%

$1,000 growing to $1,500 in 2 years is a 50% ROI, or 22.47% per year annualized.

Return on investment (ROI) measures how much an investment gained relative to what it cost. This calculator also annualizes the return so investments held for different lengths of time can be compared fairly.

The formula

ROI = (Final − Initial) / Initial × 100; Annualized = (Final/Initial)^(1/years) − 1

Worked example

$1,000 growing to $1,500 in 2 years is a 50% ROI, or 22.47% per year annualized.

The example is pre-loaded in the result panel — press Calculate with your own numbers to replace it.

Frequently asked questions

What is a good ROI?

It depends on risk and time. A 50% ROI over 10 years (4.14% annualized) is weaker than 20% in one year — which is why the annualized figure matters.

Can ROI be negative?

Yes. If the final value is below the initial investment, both the net gain and ROI are negative.

Category: Finance calculators