ROI Calculator

What is roi calculator?

Return on investment measures how much you gained or lost compared with what you put in. Business owners use it to judge projects, marketers use it for campaigns and investors use it to compare assets.

Adding the number of years also gives the annualized return, which lets you compare an investment held for two years with one held for five.

How to use the roi calculator

1. Enter the amount you invested and the final value.
2. Add the number of years if you want the yearly return.
3. Read the ROI, the gain and the annualized return.

How the roi calculator works

ROI equals final value minus amount invested, divided by amount invested, times 100. Annualized return, also called CAGR, equals the final value divided by the amount invested, raised to the power of one over the years, minus one.

Worked example

Common uses of the roi calculator

• Judging the return on a marketing campaign.
• Comparing two business or property investments.
• Checking the performance of shares or funds.
• Reviewing the payback of equipment or software.
• Explaining results to a manager or client.

Tips and common mistakes

Include all costs, such as fees, taxes and time, in the amount invested for a fair figure.

A high ROI over a short time is not always better than a modest ROI with lower risk.

Background: what to know before you rely on it

ROI is popular because it is simple, but it has limits. It ignores time, so a 50 percent return in one year is much better than in ten years. That is why the annualized figure helps. ROI also ignores risk and cash flow timing. For projects with money going in and out over many periods, finance teams use net present value or the internal rate of return. In marketing, ROI usually compares revenue or profit from a campaign with its spend, and teams need to agree whether revenue or profit is used. State your assumptions whenever you share a number.

Private, free and fast

This tool runs entirely in your browser. What you type or choose is not uploaded to a server and is not saved after you close the page, which keeps it fast and private. It is free to use as often as you like. See more in all finance calculators, or browse the full list of tools.

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Results are for information and education. For legal, financial, medical or security decisions, check with a qualified professional. Estimates only. Confirm with your lender or accountant.