ROI Calculator
Calculate return on investment (ROI) in seconds. Enter the amount you invested and the amount you got back to instantly see your ROI percentage and net profit, with an optional holding period for annualized ROI — all using the standard ROI = (gain − cost) / cost formula.
ToolsSoup's ROI Calculator measures how much money an investment made relative to its cost. Enter the amount you invested and the amount you got back, and you instantly see your return on investment as a percentage along with the net profit in dollars. Add an optional holding period in years and the calculator also shows your annualized ROI, so you can fairly compare investments held for different lengths of time. Use it for stocks, real estate, a marketing campaign, a side project, or any spend where you want to know what you got back for what you put in. Everything runs in your browser: no uploads, no sign-up, and your figures never leave your device.
What is ROI?
ROI, or return on investment, is a profitability ratio that tells you how much an investment gained or lost relative to its cost, expressed as a percentage. A positive ROI means the investment made money; a negative ROI means it lost money. Because it boils performance down to a single percentage, ROI lets you compare very different opportunities — a stock, a property, a course, or an ad campaign — on the same scale. It is one of the most widely used metrics in finance and business precisely because it is simple, intuitive, and easy to communicate.
How to calculate ROI
ROI needs just two numbers, and this tool does the math automatically as you type:
- Enter the amount you invested — the total cost you put in.
- Enter the amount you got back — the final value or proceeds.
- Optionally enter the holding period in years to also see the annualized ROI. Read your ROI and net profit below.
What is the ROI formula?
The formula is ROI = (final value − cost) / cost × 100. First you find the net gain by subtracting what you invested from what you got back, then you divide that gain by the cost and multiply by 100 to get a percentage. For example, investing $1,000 and getting back $1,200 gives a gain of $200, and $200 ÷ $1,000 = 0.20, or a 20% ROI. If the final value is lower than the cost, the ROI is negative, signalling a loss.
What is annualized ROI?
Total ROI ignores how long you held an investment, which makes a quick win look the same as a slow one. Annualized ROI fixes that by converting your total return into an equivalent yearly rate using the formula (final value / cost)^(1 / years) − 1. A 20% return earned over one year is far better than the same 20% earned over five years, and the annualized figure makes that obvious. Enter a holding period above and the calculator reports both the simple total ROI and the annualized ROI side by side.
Why use this ROI calculator?
- Instantly shows your ROI percentage and net profit from just the cost and the amount returned.
- Optionally computes annualized ROI when you enter a holding period in years.
- Handles losses cleanly, showing negative ROI and negative profit when the return is below the cost.
- Uses the standard ROI = (gain / cost) × 100 formula and rounds money to two decimals.
- Updates live as you type, runs entirely in your browser, and is 100% free with no ads or sign-up.
Frequently asked questions
How do I calculate ROI?
Subtract the amount you invested from the amount you got back to find your net gain, divide that gain by the amount invested, and multiply by 100 to get a percentage. Enter your numbers above and the calculator returns the ROI and net profit instantly.
What is the ROI of investing $1,000 and getting back $1,200?
The net gain is $200, and $200 ÷ $1,000 = 0.20, so the ROI is 20% and the net profit is $200. Change any field above to model your own cost and return.
What is a good ROI?
It depends on the investment and the risk, but as a rough benchmark the long-run stock market has returned around 7–10% per year. A good ROI is one that beats your alternatives for a comparable level of risk. For time-bound comparisons, look at the annualized ROI rather than the raw total.
What is annualized ROI and why does it matter?
Annualized ROI converts a total return into an equivalent yearly rate using (final value / cost)^(1 / years) − 1. It matters because a 20% return in one year is much stronger than 20% over five years; the annualized figure lets you compare investments held for different lengths of time fairly.
Can ROI be negative?
Yes. If the amount you got back is less than the amount you invested, your net gain is negative, so the ROI is negative too. This calculator shows both the negative ROI and the negative net profit so you can see the size of the loss.