ROI Calculator
Enter what you invested and what you got back to calculate return on investment (ROI), including an annualised figure when the investment lasts more than a year.
Profit
$4,500.00
ROI
45%
Annualised ROI
20.42%
Multiple on invested capital
1.45×
Break-even value
$10,000.00
How this was worked out
- Step 1Profit = 14,500 − 10,000 = 4,500
- Step 2ROI = 4,500 ÷ 10,000 × 100 = 45%
- Step 3Annualised = (1.45^(1 ÷ 2) − 1) × 100 = 20.42%
Formula
ROI = ((Value returned − Cost) ÷ Cost) × 100
How it works
- 1ROI measures efficiency, not size: a 50% return on $100 and on $1,000,000 have the same ROI but very different cash outcomes.
- 2Annualising lets you compare investments held for different lengths of time.
- 3ROI ignores risk, timing of cash flows and tax, so use it alongside other measures such as IRR or NPV.
Example
Input
Cost $10,000, returned $14,500 over 2 years
Result
ROI 45%, annualised ≈ 20.4%
Frequently asked questions
It depends on the risk and the alternative. Beating a risk-free government bond return is the minimum most investors expect from a risky asset.
ROI compares profit with what you invested. Margin compares profit with revenue earned.
Annualised ROI = ((final ÷ initial)^(1 ÷ years) − 1) × 100.
Related tools
Keep going — these tools solve the problems that usually come next.
Compound Interest Calculator
PopularSee how money grows when interest earns interest.
Finance
Mortgage Calculator
PopularMonthly repayments, total interest and the full cost of a home loan.
Finance
Loan Calculator
PopularMonthly payment, total interest and amortisation for any loan.
Finance
Investment Calculator
Project the future value of an investment with or without contributions.
Finance