Return on investment, or ROI, tells you how much you gained or lost compared with what you put in. Enter the amount you invested, what it is worth now and, if you like, how many years it took, and this free calculator shows your ROI and yearly return.
| Net profit | – |
| Yearly return (annualised) | – |
How it works
ROI (%) = (final value − amount invested) ÷ amount invested × 100.
Yearly (annualised) return = (final value ÷ amount invested)^(1 ÷ years) − 1. This shows the steady yearly rate that would give the same result, which makes investments of different lengths easier to compare.
Worked example
You invest 1,000 and it grows to 1,500 over 2 years. ROI is (1,500 − 1,000) ÷ 1,000 = 50%. The yearly return is (1.5)^(1/2) − 1, about 22.47% a year.
Tips
- Include all costs in the amount invested, such as fees and your own time if you can value it.
- ROI ignores risk and timing. A high ROI over ten years may be worse than a lower one over one year.
- Use ROI to compare marketing or software spend too: divide the extra profit by what you spent.
Frequently asked questions
Is a higher ROI always better?
Not always. Consider the time it took, the risk and whether you can repeat the result.
Can ROI be negative?
Yes. A negative ROI means you lost money.
What is annualised ROI?
It converts a total return over several years to an equivalent yearly rate.
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This calculator is for general information and is not investment advice. Past returns do not predict future results.