ROI Calculator
Enter what you invested and what you got back to get ROI as a percentage and the profit or loss. Add the years held to see the annualized return (CAGR). How it works
Use the ROI Calculator
About the ROI Calculator
ROI = (amount returned − amount invested) ÷ amount invested × 100. Put in $1,000 and get back $1,200, and the return on investment is 20% with a $200 profit. Add the years held and the ROI calculator also gives the annualized return: that 20% earned over 2 years is 9.54% a year.
Annualized return for a total ROI
| Total ROI | Held 3 years | Held 5 years | Held 10 years | Held 20 years |
|---|---|---|---|---|
| 25% | 7.72% | 4.56% | 2.26% | 1.12% |
| 50% | 14.47% | 8.45% | 4.14% | 2.05% |
| 100% | 25.99% | 14.87% | 7.18% | 3.53% |
| 200% | 44.22% | 24.57% | 11.61% | 5.65% |
| 400% | 71.00% | 37.97% | 17.46% | 8.38% |
Annualized return = (1 + total ROI)^(1 ÷ years) − 1. A 100% ROI means the money doubled, and 200% means it tripled.
Frequently asked questions
- How do I calculate ROI?
- Subtract what you invested from what you got back, divide by what you invested and multiply by 100. $2,500 that becomes $3,100 is ($3,100 − $2,500) ÷ $2,500 × 100 = 24%, a $600 profit.
- What is the difference between ROI and annualized return?
- ROI is the total gain over the whole period, however long it was. Annualized return, also called CAGR, is the steady yearly rate that would produce that gain. Doubling your money is a 100% ROI: over 5 years that is 14.87% a year, and over 10 years it is 7.18%.
- Can ROI be negative?
- Yes. Invest $5,000 and get back $4,000, and the ROI is −20%, a loss of $1,000. Held for 2 years, that is −10.56% a year. Getting nothing back is −100%.
- Should fees and taxes be included?
- For a true figure, yes. Add purchase costs and fees to the amount invested, add income such as dividends or rent to the amount returned, and take selling costs and taxes off it. The calculator uses the two amounts exactly as you type them.
- How do I work out the ROI on a property?
- Use total cash put in and total cash taken out. Bought for $250,000 and sold for $400,000 after 8 years is a 60% ROI, or 6.05% a year, before renovation costs, mortgage interest, taxes and rent are counted.
- How much do I need to get back for a target ROI?
- Multiply the amount invested by 1 + the target ÷ 100. Choose “Amount to be returned” under What do you want to find?: $1,000 at a 25% target needs $1,250 back. The amount to invest works the other way: $1,200 back at 20% means investing $1,200 ÷ 1.2 = $1,000.
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