ROI Calculator
Calculate return on investment as a percentage, with optional annualized return.
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How it works
Return on investment measures profit relative to cost. The tool subtracts your initial cost from the final value to get net gain, then divides by the cost and multiplies by 100 for the ROI percentage. If you enter a holding period in years, it also computes the annualized (compound) return, which lets you compare investments held for different lengths of time on an equal footing. Currency formatting is configurable and every calculation runs locally in your browser.
ROI % = (gain − cost) / cost × 100
annualized = (value/cost)^(1/years) − 1
Common use cases
- Measuring the percentage return on a stock or crypto trade.
- Comparing two investments held for different time spans via annualized return.
- Evaluating whether a business expense paid off.
Frequently asked questions
What is annualized return and why use it?
Annualized return expresses a multi-year gain as an equivalent yearly compound rate. It lets you fairly compare, say, a 50% return over three years against a 20% return over one year, which raw ROI cannot.
Can ROI be negative?
Yes. If the final value is less than the cost, the gain is negative and ROI is below zero, indicating a loss.
Does this account for fees or taxes?
Only if you include them. Add fees to your cost and use the after-tax final value for a more realistic net ROI.