Return on investment (ROI) answers the simplest question in business: for every unit of money you put in, how much did you get back? It's how you compare a marketing campaign with a new machine, a property renovation with an index fund, or two software tools competing for the same budget. This free ROI calculator gives you the full picture in one place. Enter the amount invested and the amount returned (or the final value), and you'll see the net profit and the classic ROI percentage: (gain − cost) ÷ cost × 100. Plain ROI ignores time, though, and a 50% return over one year is very different from 50% over ten. So add the holding period and the calculator also shows annualized ROI (the compound annual growth rate, or CAGR), which lets you fairly compare investments of different lengths. If the return arrives as a regular monthly or yearly gain, enter that instead to get the payback period: how long until you've earned your money back. A comparison mode puts two options side by side and highlights the better annualized return. Choose from five currencies. Remember that ROI is only as good as its inputs: include all costs, such as time, fees, tax and maintenance, for an honest number. Calculated in your browser.
Calculate ROI
Formulas
- ROI = (Final value − Cost) ÷ Cost × 100
- Annualized ROI = (Final ÷ Cost)^(1 ÷ years) − 1
- Payback period = Cost ÷ gain per period
FAQ
What is a good ROI?
It depends on risk and time. Compare against alternatives like an index fund’s long-run average, and always look at annualized ROI.
Why annualize ROI?
A 30% return over 6 months beats 40% over 5 years. Annualizing makes different time frames comparable.
Should I include my time?
For an honest ROI, yes. Put a value on hours spent and add it to the cost.
Is this financial advice?
No. It’s a calculator for estimates.
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