ROI Calculator

Calculate ROI percentage, net profit, and annualized return on investment. Simple and accurate ROI formula.

Last updated: June 1, 2026

Investment Amount ($)

Return Amount ($)

Period (years)

ROI

50.00%

Net Profit

$5,000.00

Annualized ROI

14.47%

What is ROI Calculator?

An ROI (Return on Investment) calculator measures the profitability of an investment as a percentage of the initial cost. ROI = (Net Profit / Investment Cost) × 100. It's the most universal metric for evaluating whether spending money was worthwhile — applicable to marketing campaigns, real estate, stocks, business equipment, employee training, software purchases, and any decision where you spend money expecting future returns. This tool also calculates annualized ROI for comparing investments held for different time periods.

How It Works

Enter the initial investment amount and either the final value or net profit. The tool calculates: ROI% = (final value - investment) / investment × 100. For annualized ROI (to compare investments over different time periods), it uses: annualized ROI = ((1 + ROI)^(1/years) - 1) × 100. This adjusts for time so you can fairly compare a 50% return over 5 years against a 20% return over 1 year. The tool also shows net profit/loss in absolute terms and payback period at constant returns.

Common Use Cases

•Evaluating marketing campaign effectiveness by comparing ad spend to revenue generated
•Comparing real estate investment returns across properties with different hold periods
•Measuring the return on employee training programs based on productivity improvements
•Calculating stock investment performance including dividends and capital gains
•Justifying software or equipment purchases by quantifying time savings as dollar returns
•Comparing investment opportunities with different timelines using annualized ROI normalization