Measure any investment’s return. This free ROI calculator shows your net profit, total ROI and annualized ROI from the amount you invested and what it’s now worth.
Results update automatically as you type. A negative ROI means a loss.
How the ROI Calculator Works
Return on investment measures how much an investment gained or lost relative to what you originally put into it. This calculator compares the amount you invested to its final value, then optionally spreads that gain or loss across your holding period to produce an annualized, compounding-equivalent rate.
Formula: ROI (%) = (Final Value − Amount Invested) ÷ Amount Invested × 100. When a holding period is entered, Annualized ROI (%) = [(Final Value ÷ Amount Invested)^(1 ÷ years) − 1] × 100.
- Amount invested — what you originally paid or put into the investment.
- Final value / amount returned — what the investment is worth now, or what you received when you exited it.
- Holding period — the number of years you held the investment, used only to calculate the annualized rate (optional).
- Net profit — final value minus amount invested; negative if the investment lost money.
- Total ROI — net profit expressed as a percentage of the amount invested.
- Annualized ROI — the total return converted into an equivalent constant yearly compounding rate.
Example Scenarios
| Amount Invested | Final Value | Holding Period | Total ROI | Annualized ROI |
|---|---|---|---|---|
| $10,000 | $15,000 | 3 yrs | +50.0% | ≈+14.5% |
| $5,000 | $4,000 | 2 yrs | -20.0% | ≈-10.6% |
| $20,000 | $26,000 | 4 yrs | +30.0% | ≈+6.8% |
| $8,000 | $8,000 | 5 yrs | 0.0% | 0.0% |
| $2,000 | $6,000 | 10 yrs | +200.0% | ≈+11.6% |
ROI Calculator FAQ
What counts as “amount invested” if I made contributions at different times?
This calculator assumes a single lump-sum investment date. If you added money at different times, such as dollar-cost averaging, a simple ROI won’t reflect the timing accurately, and a money-weighted return calculation would be more precise.Why is my annualized ROI so much lower than my total ROI?
Annualized ROI spreads your total return across the holding period as a compounding rate. Over multi-year holds, this compounding-adjusted percentage is typically much smaller than the raw total ROI, since total ROI isn’t time-adjusted at all.What does a negative ROI number mean?
A negative ROI means the final value is lower than the amount you invested, indicating a net loss. The percentage shown reflects how large that loss is relative to your original investment.Does ROI factor in fees, dividends, or taxes?
No. The calculator only compares the amount invested to a final value you supply, so if that final value doesn’t already account for reinvested dividends, fees, or taxes, you’ll need to fold those in yourself before entering it.Why is the holding period field optional?
Total ROI only requires a starting and ending amount. Holding period is used exclusively to calculate the annualized ROI, so you can leave it blank if you just want a simple percentage return over the entire hold.How is annualized ROI different from CAGR?
They’re the same calculation. The annualized ROI shown here is a compound annual growth rate applied over your holding period, converting a total gain or loss into an equivalent constant yearly rate.Related Calculators
To dig deeper into a specific return, you can work out a compound annual growth rate directly, estimate income from dividend-paying holdings, or, if the investment is a rental unit, run the numbers through a rental property ROI calculator built for real estate cash flow.