ROI Calculator: Calculate Return on Investment

Whether you’re evaluating a stock, real estate deal, or business investment, knowing the return on investment (ROI) is essential. Our free ROI Calculator shows you the percentage return, net profit, annualized return, and gain multiple.

How to Use the Calculator

Enter the initial investment: What you paid or invested
Enter the final value: What the investment is worth now (or what you sold it for)
Enter the holding period (optional): How many years you held the investment
Click Calculate: See ROI, net profit, annualized return, and gain multiple

Understanding the Results

ROI: The simple return on investment as a percentage: (Final - Initial) / Initial x 100
Net Profit: The dollar amount gained or lost
Annualized Return: The equivalent yearly return, accounting for the holding period. This allows fair comparison between investments held for different durations
Gain Multiple: Final value divided by initial investment (e.g., 2.0x means your money doubled)

Why Annualized Return Matters

A 50% return sounds great, but it matters whether that happened in 1 year or 10 years. Annualized return normalizes the performance to a per-year basis, making it possible to compare:

A stock that returned 100% over 5 years (~14.9% annualized)
A bond that returned 30% over 3 years (~9.1% annualized)

Common Use Cases

Stock investments: Calculate returns on individual stocks or portfolios
Real estate: Evaluate property appreciation and rental income ROI
Business investments: Assess the return on capital expenditures
Marketing campaigns: Measure ROI on advertising spend
Education: Calculate the financial return on a degree or certification

Tips

Include all costs in the initial investment (fees, taxes, renovations)
Include all returns in the final value (dividends, rental income, sale price)
Use annualized return to compare investments with different time horizons
A negative ROI means you lost money on the investment

Frequently Asked Questions

Does this account for fees and taxes? Include fees in your initial cost and subtract taxes from your final value for a net ROI.

What’s a good ROI? It depends on the investment type and risk. The S&P 500 averages about 10% annually before inflation. Real estate typically targets 8-12%. Higher-risk investments should offer higher potential returns.

Can I calculate ROI on an ongoing investment? Yes. Use the current market value as the final value to see your unrealized return.

Try our free ROI Calculator to calculate your investment returns.