ROI Calculator
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Calculate Return on Investment percentage and annualized ROI for any business or stock investment instantly.
ROI Calculator
Total ROI
0%
About This Tool
What is ROI?
Return on Investment (ROI) measures the gain or loss generated on an investment relative to its initial cost. It's the most common profitability metric used by investors and businesses.The Formulas
Simple ROI:ROI % = (Net Profit / Cost) × 100
Annualized ROI:
Annualized ROI = ((Final / Initial)^(1/years) − 1) × 100
Annualized ROI is more useful for comparing investments held for different time periods.Frequently Asked Questions
What's a good ROI?
It depends on the asset class and time period. For stocks, the long-term S&P 500 average is around 7–10% annually after inflation. Real estate often returns 8–12%. For business investments, 15%+ is generally considered strong.
Why use annualized ROI instead of total ROI?
Total ROI of 50% over 10 years is much weaker than 50% over 2 years. Annualized ROI normalizes returns into per-year rates so different investments can be compared fairly.
Does this account for taxes or fees?
No. To get net ROI, subtract taxes, transaction fees, and inflation from your final value before entering it. The calculator gives the pure mathematical return.
