ROI Calculator
Calculate return on investment, net profit, and annualised ROI for any investment.
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How to use this calculator
Net Profit = Final Value − Initial Investment. ROI % = Net Profit ÷ Initial Investment × 100.
- 1
Enter the initial amount you invested.
- 2
Enter the final value of your investment.
- 3
Enter how many years the investment ran.
- 4
The calculator shows total ROI, net profit, and the annualised return (CAGR).
Frequently asked questions
What formulas does this tool use?
This tool uses Net Profit = Final Value − Initial Investment, ROI = Net Profit ÷ Initial Investment × 100, Annualised ROI (CAGR) = (Final ÷ Initial)^(1 ÷ Years) − 1, and Return Multiple = Final ÷ Initial. Each is shown on the result card.
How is the annualised figure different from ROI?
ROI is the gain over the whole holding period. The annualised figure is the steady yearly rate that would turn the initial amount into the final value in the stated years. A 50% ROI on $10,000 → $15,000 annualises to 50.00% over 1 year, 22.47% over 2 years and 4.14% over 10 years.
Can ROI be negative?
Yes. $8,000 ending at $6,000 over 2 years gives ROI of −25.00%, a net loss of $2,000.00 and an annualised rate of −13.40%. The return multiple is 0.75×.
What if the final value is 0?
It is treated as a total loss. ROI is −100.00%, the multiple is 0.00× and the annualised rate is −100.00%. A negative final value is not valid for the annualised rate, which then shows n/a.
What if the initial investment is 0?
You cannot express a gain as a percentage of nothing, so ROI, Annualised ROI and Return Multiple all show n/a. Net Profit / Loss is still shown as the final value minus zero.
What if the duration is 0?
ROI, net profit and return multiple still work, but Annualised ROI shows n/a because there is no time span to spread the gain over. Enter a duration above zero to see the annual rate.
Does it handle several cash flows?
No. It assumes one amount invested at the start and one value at the end. Added deposits, withdrawals, dividends or interim income are not recognised, so it is not an IRR calculation. Fees, taxes and inflation are also excluded.
ROI calculator: total return, net profit and annual rate
Four numbers from three inputs
Starting amount, ending value and years produce everything on the card. Net profit is the difference. ROI divides that difference by what you put in, expressed as a percentage. The return multiple is the ending value divided by the starting amount, so 1.50× means you ended with one and a half times what you started. The annualised figure takes the multiple to the power of one over the years and subtracts one.
Worked example: the built-in investment
The figures built into this tool are $10,000 invested, a final value of $15,000 and 3 years. Running them gives ROI of 50.00%, a net profit of $5,000.00, an annualised rate (CAGR) of 14.47% and a multiple of 1.50×. A losing case follows the same path: $8,000 ending at $6,000 in 2 years gives ROI of −25.00%, a loss of $2,000.00 and an annualised −13.40%. Flat results are handled too: $2,000 returning $2,000 over 4 years shows 0.00% and a 1.00× multiple.
Why the same ROI can mean different annual rates
The table holds the gain constant, $10,000 growing to $15,000, and varies only how long it took. ROI and the multiple never change, but the annual rate shrinks as the same gain is spread across more years. This is the reason ROI alone is a poor basis for comparing two investments held for different lengths of time.
| Years held | ROI | Annualised ROI (CAGR) | Return multiple |
|---|---|---|---|
| 1 | 50.00% | 50.00% | 1.50× |
| 2 | 50.00% | 22.47% | 1.50× |
| 5 | 50.00% | 8.45% | 1.50× |
| 10 | 50.00% | 4.14% | 1.50× |
Total loss and undefined cases
Setting the final value to 0 returns ROI of −100.00% with a multiple of 0.00×. When the starting amount is 0 the tool reports n/a for the percentage fields instead of Infinity, and when the duration is 0 only the annualised field is n/a. That way, a zero entry, which is also what a cleared box becomes, produces a clear label rather than a misleading number.
What ROI does not capture
Nothing in the calculation reflects risk, fees, taxes or the effect of rising prices. It also treats the whole sum as invested on day one. If money moved in or out along the way, split the history into periods and calculate each separately, or use a tool built for uneven cash flows.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →