ROI Calculator

Measure the efficiency of your investments. Calculate Return on Investment (ROI) and annualized returns.

ROI Inputs

Used for annualized calculation.

Total ROI

50.00%

Net Profit/Loss

$500.00

Annualized ROI

50.00%

What is Return on Investment (ROI)?

ROI is a financial metric used to evaluate the efficiency or profitability of an investment. It measures the amount of return on an investment relative to the investment's cost.

How to Calculate ROI

The standard ROI formula is:
ROI = [(Current Value of Investment - Cost of Investment) / Cost of Investment] × 100

Why is Annualized ROI Important?

Simple ROI doesn't account for time. An investment that returns 50% over 5 years is very different from one that returns 50% in 1 year. Annualized ROI allows you to compare investments held for different periods on an equal footing.