How to use this ROI calculator
- Amount invested — the cash you originally put into the investment.
- Final value — what the investment is now worth, or the total amount you got back when you sold or cashed out.
- Investment length — how many years you held the investment. This is optional; leave it blank if you only want the simple ROI and net profit.
The results update instantly as you type. You will see your ROI as a percentage, your net profit in dollars, and — when you enter a holding period — your annualized return so you can compare it against other investments.
How return on investment works
Return on investment measures how much you earned relative to what you put in. First the calculator finds yournet profit by subtracting the amount invested from the final value. It then divides that profit by the amount invested and multiplies by 100 to express it as a percentage. For example, turning $1,000 into $1,500 is a $500 net profit and a 50% ROI. A negative ROI means the investment lost value.
Raw ROI ignores time, which can be misleading. Doubling your money in one year is far better than doubling it in ten. That is why the calculator also shows your annualized return: it spreads the total gain evenly across the years you held the investment, giving you a per-year growth rate you can compare against savings accounts, index funds or other opportunities on equal footing.
Tips for using ROI
- Include all costs: add fees, commissions and taxes to your amount invested for a truer picture.
- Compare annualized, not raw: the per-year return is the fairer way to rank investments held for different lengths of time.
- Mind the risk: a higher ROI often comes with higher risk, so weigh the return against how much you could lose.
Frequently asked questions
How do you calculate ROI?
ROI is your net profit divided by the amount invested, shown as a percentage. Net profit is the final value minus the amount you invested, so ROI equals (final value minus amount invested) divided by amount invested, times 100.
What is a good ROI?
It depends on the investment and how long your money was tied up. Any positive ROI means you made money, but comparing the annualized return against benchmarks like the long-run stock market average is more meaningful than the raw percentage.
What is annualized return?
Annualized return spreads your total ROI evenly across the number of years you held the investment, so you can compare investments of different lengths on equal footing.
Is my data uploaded?
No — everything is calculated in your browser and nothing is sent anywhere.
This tool is for general information only and is not financial advice.
Related: Compound Interest Calculator, Simple Interest Calculator, Savings Goal Calculator, Percentage Calculator.