ROI Calculator
The return on an investment in percent, in total and per year.
Good to know. A 25% return sounds better than 11.8% a year. Over two years they are the same thing.
Not financial advice. Uses only the numbers and rates you enter — no live data.
How it works
In plain words
Subtract what you invested from what you got back, and divide by what you invested. For a yearly figure, take the growth factor to the power of one over the years.
The formula
ROI = (final value − invested) ÷ invested annualized ROI = (final value ÷ invested)^(1 ÷ years) − 1
Worked example
Investing 10,000 and getting back 12,500 after 2 years is a gain of 2,500 and an ROI of 25%. Per year, that is 1.25^(1/2) − 1 = 11.80%.
Sources
- Brealey, Myers and Allen, Principles of Corporate Finance, chapter 2 The standard formulas for loan payments, compounding and present value, the same as a spreadsheet’s PMT and FV.
Sources checked October 3, 2026. 3 automated tests check its answers on every change.
About the ROI calculator
Return on investment, ROI, is the simplest measure of how well money did: the gain divided by what was put in. 2,500 made on 10,000 is an ROI of 25%. It works for anything with a cost and a payoff: shares, a property, a course, a marketing campaign or new kitchen equipment.
ROI on its own ignores time. Earning 25% over two years is much better than 25% over ten. The annualized ROI turns the total into a yearly rate with compounding, the same way a savings account’s APY works, so investments held for different lengths of time can be compared fairly.
Count everything on both sides. The amount invested should include fees and costs, and the amount returned should include income received along the way, such as dividends or rent, net of taxes if you want an after-tax ROI.
For an investment with a start and end value only, the CAGR calculator gives the same yearly rate. For regular contributions, use the investment return calculator; for a single share trade with fees, the stock profit calculator.
Questions people ask
How do I calculate ROI?
ROI = (final value − amount invested) ÷ amount invested. 12,500 back on 10,000 invested is 25%.
What is annualized ROI?
The total return turned into a steady yearly rate with compounding. 25% over 2 years is about 11.8% a year.
What is a good ROI?
It depends on the risk. Broad stock markets have returned about 7–10% a year over long periods; safer investments return less.