About the ROI Calculator
ROI, or return on investment, compares the profit you made with what you put in. Enter the amount invested, the final value and any extra costs such as fees, repairs or taxes, and this calculator returns the net profit and the ROI as a percentage of your total cost. If you also say how long you held the investment, it shows the annualised return, which lets you compare a two-year gain with a five-year one. A second section works backwards: give it a cost and a target ROI and it tells you the final value you need. ROI ignores risk and the time value of money unless you enter a period, and past returns do not predict future ones. This is not tax or investment advice.
Updated September 2026
How to use the ROI Calculator
- 1Enter the amount invested and the final value.
- 2Add any extra costs, such as fees, repairs or taxes.
- 3Optionally enter how long you held it, in years or months.
- 4Read the net profit, the ROI and the annualised ROI.
- 5Use the Target section to find the final value needed for a chosen ROI.
The ROI formula
ROI = (final value − total cost) ÷ total cost × 100. The top line is the net profit, and the bottom line is everything you paid, so the answer is profit per unit spent. A result of 0 means you broke even, a positive result is a gain and a negative one is a loss. A loss of 100 percent means the whole amount was lost.
Including fees and other costs
It is easy to forget costs, and they can change the picture. Property deals have legal fees, repairs and taxes. Shares have trading fees. Businesses have running costs. Add them all to the Extra costs box, and the calculator adds them to the amount invested to get the total cost used in the percentage.
The verdict line under the result tells you the total cost that the percentage is based on, so you can check that it is right.
Annualised ROI (CAGR)
Use it to compare investments of different lengths. To see how a yearly rate grows over time, try the Compound Interest Calculator.
- Enter the holding period in years or months
- The annualised rate is (1 + ROI)^(1 ÷ years) − 1
- 20 percent in six months is 44 percent a year if repeated
- It can't be shown if the entire amount was lost
Limits of ROI
ROI says nothing about risk. Two investments with the same ROI can be very different if one could have lost everything. It also ignores when money moved: regular deposits and withdrawals need a different measure. For monthly investing use the SIP Calculator, and for sales margins use the Profit Margin Calculator. To work out a percentage change on its own, use the Percentage Calculator. Results are estimates and not investment advice.
Features
- ROI as a percentage of total cost
- Net profit or loss
- Extra costs included in the maths
- Annualised ROI (CAGR) from a holding period
- Target section: the final value needed for a goal ROI
- Total loss handled (final value 0)
- Currency symbol picker
- Runs in your browser
Frequently asked questions
What is a good ROI?
It depends on the risk and the time. A savings account may return a few percent a year, while a business or property can return much more or lose money. Use the annualised figure to compare investments that lasted different lengths of time.
How do I calculate ROI?
Subtract the total cost from the final value to get the net profit, divide that by the total cost, and multiply by 100. Investing 1,000 and selling for 1,500 is a profit of 500 and an ROI of 50 percent.
What is annualised ROI and why does it matter?
It is the yearly rate that would produce the same total return, compounded. A 50 percent gain over 3 years is about 14.5 percent a year. It matters because 50 percent in one year and 50 percent in five years are very different results.
Should I include fees and taxes in ROI?
Yes, if you want an honest result. Put fees, repairs, commissions and taxes in the Extra costs box. They raise the total cost, which lowers the ROI, so 1,000 invested with 100 of costs and a final value of 1,500 gives 36.4 percent, not 50.
What is the difference between ROI and profit?
Profit is an amount of money, such as 400. ROI is that profit as a percentage of what you spent, such as 36.4 percent. ROI lets you compare a small investment with a large one.
How do I calculate the ROI needed to reach a goal?
Use the Target section. Enter your total cost and the ROI you want, and it multiplies the cost by one plus the ROI. A cost of 1,100 and a target of 25 percent needs a final value of 1,375.
What if I lost money?
The ROI is negative and the result says you lost that percentage. A final value of 0 is allowed and shows a 100 percent loss; the annualised figure is not shown in that case.