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ROI Calculator

Calculate return on investment and net profit instantly, with optional annualized ROI.

Privacy: your files never leave your device. All processing happens locally in your browser.

How to use

  1. 1.Enter the initial cost — the total amount of money you invested, in dollars.
  2. 2.Enter the final value — what the investment is worth now or what you sold it for.
  3. 3.Read the ROI percentage and net profit instantly; optionally add a holding period in years to also see the annualized ROI (CAGR).

About ROI Calculator

The ROI Calculator measures how much money an investment made or lost relative to what you put in. It uses the standard return-on-investment formula ROI% = (final value − initial cost) ÷ initial cost × 100, and reports the net profit (final value − initial cost) alongside it. Enter what you paid (the cost) and what the investment is now worth (the final value), and the result updates instantly. Everything runs locally in your browser, so nothing you type is uploaded.

ROI is the most widely used yardstick for comparing investments because it normalizes gains against the amount invested. A $500 profit on a $1,000 stake is a 50% return; the same $500 profit on a $10,000 stake is only 5%. By dividing profit by cost, ROI lets you line up a stock trade, a rental property, a marketing campaign, or a side project on the same percentage scale. A positive ROI means you gained money, zero means you broke even, and a negative ROI means you lost money — for example, a $2,000 cost that ends at $1,600 is a −20% ROI and a $400 loss.

Plain ROI has one blind spot: it ignores time. Turning $1,000 into $1,500 is a 50% return whether it took one year or ten, but those are very different investments. That is why this tool also computes annualized ROI when you enter a holding period. Annualized ROI is the compound annual growth rate (CAGR): the steady yearly rate that would grow your cost into the final value over the number of years held, using ((final value ÷ cost)^(1 ÷ years) − 1) × 100. A 50% total gain over 3 years works out to about 14.47% per year — far more comparable to a savings rate or a benchmark index than the headline 50%.

Worked example: you buy $10,000 of an asset and sell it for $20,000 after 10 years. Plain ROI is (20,000 − 10,000) ÷ 10,000 × 100 = 100%, a $10,000 profit. But the annualized ROI is only about 7.18% per year, because that 100% was spread across a decade. Enter those figures above to see both numbers side by side.

A few caveats: ROI as defined here does not subtract fees, taxes, inflation, or the opportunity cost of capital, and it treats the whole gain as realized. Annualized ROI requires a final value above $0 (you cannot take a fractional root of a negative number) and a holding period greater than zero. For interest that compounds over regular deposits, see the compound interest calculator or savings calculator. The figures here are estimates for general information only and are not financial advice.

Methodology & sources

Return on investment is computed with the standard formula ROI% = (finalValue − cost) ÷ cost × 100, and net profit = finalValue − cost. When a holding period is supplied, annualized ROI is the compound annual growth rate (CAGR): annualizedROI% = ((finalValue ÷ cost)^(1 ÷ years) − 1) × 100. Assumptions: 'cost' is the total capital invested and 'finalValue' is the ending value or sale proceeds; the gain is treated as fully realized, and no fees, taxes, inflation, or opportunity cost are deducted. Constraints: cost must be greater than 0 (it is the denominator); annualized ROI additionally requires finalValue greater than 0 (a negative base cannot take a fractional root) and years greater than 0 — violations are rejected rather than returning NaN. Plain ROI does permit a final value at or below the cost, reporting a negative return for a loss. These estimates are for general information only and are not financial advice — verify figures with a licensed professional.

Frequently asked questions

What is the ROI formula?
Return on investment is ROI% = (final value − initial cost) ÷ initial cost × 100, and net profit is simply final value − initial cost. A $500 gain on a $1,000 cost is a 50% ROI; a $400 loss on a $2,000 cost is a −20% ROI.
What is annualized ROI (CAGR) and how is it different?
Plain ROI ignores how long you held the investment, so a 50% gain looks the same whether it took one year or ten. Annualized ROI, or compound annual growth rate, is the steady per-year rate that turns your cost into the final value: ((final value ÷ cost)^(1 ÷ years) − 1) × 100. A 50% total gain over 3 years is about 14.47% per year, which is far more comparable to a savings or index return.
Does this ROI calculator account for fees, taxes, or inflation?
No. It reports gross ROI and profit based only on the cost and final value you enter. It does not subtract trading fees, taxes, inflation, or opportunity cost, and it assumes the gain is fully realized. Treat the output as a quick estimate and verify your real net return with a licensed professional.

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