ROI Calculator
Work out return on investment, net profit and annualised return.
ROI ignores risk and, unless you include them, fees and tax. This is general information, not financial advice.
Measuring what you got back
Return on investment compares profit to the amount you put in. It is the common yardstick for judging whether something paid off, from shares and property to a marketing spend.
ROI = (final − initial) ÷ initial × 100
Total ROI alone can flatter a long, slow gain, so the calculator also annualises it — the equivalent steady yearly return — which is the fair way to compare investments held for different lengths of time.
Investing $1,000 and ending with $1,300 is a $300 net profit — a 30% return. Spread over two years, that is an annualised return of about 14%.
Using ROI sensibly
ROI is a clear headline number, but it says nothing about risk, effort or timing. A modest annualised return on a safe asset can beat a flashy total return that took a decade and a lot of risk. Pair it with context before drawing conclusions.
Worth remembering
- Annualise to compare. Different time frames need a common basis.
- Count every cost. Fees and tax quietly erode real returns.
- Risk is invisible here. A high ROI is not the same as a good decision.
This is general information, not financial advice.