ROI Calculator
Calculate your return on investment (ROI) percentage and annualized returns. Use this calculator to measure the profitability of investments, projects, or business decisions.
Investment
The amount you invested or spent
Returns
The current or final value of your investment
Time Period (Optional)
Enter to calculate annualized ROI
What is ROI?
Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment. It measures the gain or loss generated relative to the amount invested.
The ROI Formula
The basic ROI formula is: ROI = (Final Value - Initial Investment) / Initial Investment x 100
Annualized ROI
Annualized ROI (also called CAGR - Compound Annual Growth Rate) shows the yearly average return of your investment, making it easier to compare investments of different time periods. The formula is: Annualized ROI = ((Final Value / Initial Investment)^(1/years) - 1) x 100
Using ROI for Decisions
- Compare different investment opportunities
- Evaluate marketing campaign effectiveness
- Assess business project profitability
- Measure stock or real estate performance
Limitations of ROI
While ROI is useful, it doesn't account for the time value of money, risk, or opportunity cost. For a complete analysis, consider using multiple metrics alongside ROI.
Important Disclaimer
This calculator provides estimates for educational and informational purposes only. Results should not be considered as financial, investment, or tax advice. Actual returns may vary based on market conditions, fees, taxes, and other factors not accounted for in this calculation.
Always consult with a qualified financial advisor, accountant, or investment professional before making financial decisions.