ROI Calculator
ROI Calculator
Modify the values and click calculate
Investment Outcome
Total ROI
Enter your cost and final value to see your return.
Understanding Return on Investment
Return on investment (ROI) answers the simplest possible investing question: "I put in this much, I got this much back -- what was my return?" Unlike a projection tool that assumes a rate and solves for a future value, this calculator starts from a known cost and a known outcome and works backward to the percentage return.
Total ROI: The Simplest Measure
Total ROI is just (final value - cost) / cost × 100. It answers "what percentage did I gain or lose overall," with no regard for how long the money was invested.
Annualized ROI: Time-Adjusted
A 30% total return over 3 years is very different from a 30% return over 3 months. Annualized ROI converts your total return into an equivalent constant yearly rate, so returns over different holding periods can be fairly compared.
Works for Any Asset
ROI isn't limited to stocks -- it works identically for real estate, a business, a collectible, or any asset where you know what you paid and what it's worth (or sold for) now.
Looking Backward, Not Forward
This calculator answers "what was my return," using a cost and outcome you already know. If instead you want to project a future value from an assumed return rate, see the Investment Calculator.
Worked Example
Suppose you invested $5,000 and it's now worth $6,500, over a 3-year holding period:
- Gain: $6,500 - $5,000 = $1,500.
- Total ROI: $1,500 / $5,000 × 100 = 30%.
- Annualized ROI: (6,500 / 5,000)1/3 - 1 ≈ 9.14% per year.
Total vs. Annualized
- Total ROI: 30.00%
- Annualized ROI: 9.14%
Have a Series of Yearly Returns Instead?
This calculator is built for exactly one cost/outcome pair -- if you instead have a year-by-year series of returns and want to see how they average out (and how much volatility affected that average), the Average Return Calculator is the right tool for that multi-period question.
Key Takeaways
- Total ROI Ignores Time: Always check the holding period before comparing two ROI figures head-to-head.
- Annualized ROI Enables Fair Comparison: Converting to a per-year rate lets you compare investments held for different lengths of time.
- Works for Any Asset Class: Stocks, real estate, a business sale -- if you know cost and final value, ROI applies.
- Projecting a Future Value Instead? Use the Investment Calculator if you want to solve forward from an assumed rate of return, not backward from a known result.