ROI Calculator

ROI calculator: return on investment as a percentage, plus the annualized return over a holding period.

Editorial review: Farrow (pseudonym; identity and professional credentials are not disclosed). This page is for educational purposes, not professional advice.

Your inputs

Results update as you type. Nothing you enter leaves your device.

ROI

35%

Gain: $350.00
Annualized return: 10.52%

Example with the starting values

These results use the calculator's initial inputs. Change the values above to calculate your own estimate.

Inputs

Amount invested: 1000 $
Final value: 1350 $
Years held: 3

Results

ROI: 35%
Gain: $350.00
Annualized return: 10.52%

How to calculate return on investment

Enter the invested amount
Enter the initial amount invested.
Enter the final value and holding period
Enter the investment's final value and the number of years held.
Review ROI and annualized return
Review the gain, total ROI percentage and annualized return estimate.

How does the ROI Calculator work?

Return on investment (ROI) is the gain or loss on an investment as a percentage of what you put in. The formula is ROI = (final value − amount invested) / amount invested × 100.

The annualized return is (final / initial)^(1 / years) − 1, the steady yearly rate that gives the same result. For example, $1,000 growing to $1,350 in 3 years is a 35% ROI, or about 10.5% a year.

Sources

Investor.gov: Compound interest calculator (annualized growth context)

Frequently asked questions

How do I calculate ROI?

Subtract the cost from the final value, divide by the cost, and multiply by 100. If you invest $2,000 and it grows to $2,500, ROI = (2,500 − 2,000) / 2,000 = 25%.

What is a good ROI?

It depends on risk and time, but the S&P 500 has averaged roughly 10% a year before inflation over the long run. An ROI far above that usually comes with higher risk.