ROI Calculator (Return on Investment)
Return on investment (ROI) is the gain from an investment divided by its cost. Add the holding period to convert it to a yearly rate.
Enter your figures below. Results update as you type.
Return on investment45%
- Amount invested 69%
- Gain 31%
- Net gain
- $4,500.00
- Annualized ROI
- 13.19%
How the ROI calculation works
ROI = (amount returned - amount invested) / amount invested x 100
ROI alone ignores time: 45% over three years and 45% over ten are very different results. The annualized figure corrects for that.
Frequently asked questions
What is a good ROI?
It depends on risk and time. Compare the annualized figure with what a low-cost index fund or a risk-free account would have paid over the same period.
How do I calculate ROI?
Subtract the cost of the investment from what it returned, divide by the cost and multiply by 100. $10,000 that becomes $14,500 is a 45% return on investment.
How do I calculate ROI on a rental property?
Divide the yearly net income, which is rent minus running costs, by the total cash you invested. A property that clears $9,000 a year on $150,000 of cash invested returns 6%. Changes in the property's value are counted separately.
What is annualized ROI?
The yearly rate that would produce your total return, which makes investments held for different lengths of time comparable. A 45% return over 3 years is about 13.2% a year.
Related calculators
Last reviewed: