Free ROI Calculator
Return on Investment tells you how much value an investment created relative to what you put in. This calculator gives you both simple ROI and annualised ROI, so you can compare short and long-duration investments on the same footing.
Results
About the ROI Calculator
The ROI formula
ROI = ((Return − Investment) / Investment) × 100. A $1,000 investment that returned $1,400 has a 40% ROI. Annualised ROI = ((1 + ROI)^(1/years) − 1) × 100, which normalises returns across different time periods.
Why annualised ROI matters
A 40% return over four years is not the same as a 40% return in one year. Annualised ROI expresses both as an equivalent yearly rate — the first is roughly 8.8%/year, the second is 40%/year — so you can compare fairly.
Limits of ROI
ROI ignores risk, cash-flow timing within the period and the cost of capital. Use it for quick comparisons, not final capital-allocation decisions.
Frequently asked questions
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