ROI Calculator
Return on investment (ROI) is the single most common way to measure how well an investment paid off: it expresses your gain as a percentage of what you put in. This calculator gives you both the headline total ROI and the annualized return — the figure you actually need when comparing investments held for different periods. It works for any currency.
- Initial investment
- Net gain
- Net gain
- $5,000.00
- Annualized return
- 14.47%
- Initial investment
- $10,000.00
- Final value
- $15,000.00
This investment returned 50.0% in total over 3 years, which works out to about 14.5% per year compounded. A 1× investment grew to 1.50× its starting value.
How it works
Total ROI answers a simple question: for every unit of currency you invested, how much did you get back? An ROI of 50% means you ended with 1.5× your money. The formula divides your net gain by the original cost, so it is unaffected by the currency or the absolute size of the position.
The catch is that total ROI ignores time. Earning 50% over one year is excellent; earning the same 50% over ten years is mediocre. That is why this tool also reports the annualized return, which compounds your gain across the holding period to produce an apples-to-apples yearly rate. Use the annualized figure whenever you are comparing two investments that you held for different lengths of time.
Net gain is shown separately in your own currency so you can see the actual money earned, not just the percentage. Switch the currency at the top of the page to view every figure in the units you think in.
ROI = (Final value − Initial investment) ÷ Initial investment × 100. Annualized return = ((Final ÷ Initial)^(1/years) − 1) × 100, which restates the total ROI as an equivalent yearly compound rate.
Worked example
You put 10,000 into an investment and sold it three years later for 15,000. Total ROI = (15,000 − 10,000) ÷ 10,000 × 100 = 50%, a net gain of 5,000. Because that 50% accrued over three years, the annualized return is ((15,000 ÷ 10,000)^(1/3) − 1) × 100 ≈ 14.5% per year. So while the headline reads 50%, the comparable yearly rate is about 14.5%.
Things to watch out for
ROI ignores cash flows in between — dividends, interest, or top-ups during the holding period are not captured unless you fold them into the final value. For investments with irregular contributions and withdrawals, an IRR (internal rate of return) calculation is more accurate. ROI also says nothing about risk: a 50% return on a volatile asset is not the same quality as 50% on a safe one. Finally, a negative final value relative to your cost produces a negative ROI, which the calculator flags as a loss and shows how much of a recovery is needed to break even.
Frequently asked questions
What is a good ROI?+
It depends entirely on the time period and the risk. A 50% total ROI is excellent over one year but unremarkable over ten. Always convert to an annualized return before judging it — that is the figure this calculator highlights.
What is the difference between ROI and annualized return?+
Total ROI is the raw percentage gain over the whole holding period. Annualized return restates that gain as an equivalent compound yearly rate, which lets you compare investments held for different lengths of time.
Does ROI account for dividends or interest received along the way?+
Not directly. To include them, add any dividends, interest, or distributions to the final value before entering it. For frequent or irregular cash flows, use an IRR-based tool instead.
Can ROI be negative?+
Yes. If the final value is less than the initial investment, ROI is negative — a loss. The calculator shows the loss and the percentage gain you would need from the current value to get back to your original cost.
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Disclaimer: This calculator is for educational and informational purposes only and provides estimates, not financial advice. Interest rates, taxes, fees, and local rules vary and change over time. Confirm figures with a qualified professional before making any financial decision.
Last reviewed: 2026-06-22