ROI Calculator

Calculate ROI percentage, annualized ROI, and profit/loss. Input initial investment and final value or gain amount.

Results

Profit/Loss+$2,500.00
ROI+25.00%
Annualized ROI+25.00%

Formula: ROI = ((Final − Initial) / Initial) × 100. Annualized: ((Final/Initial)^(1/years) − 1) × 100

Understanding Return on Investment

ROI measures how much you gained or lost relative to what you put in. It's expressed as a percentage: (Gain / Initial Investment) × 100. A 25% ROI means you made 25 cents for every dollar invested. ROI is used for stocks, real estate, business projects, and any investment where you want to compare performance.

This calculator accepts either the final value (e.g., current portfolio value) or the gain amount directly. It computes ROI percentage, profit/loss in dollars, and annualized ROI when you provide the time period. All calculations run in your browser.

Annualized ROI for Fair Comparison

Raw ROI doesn't account for time. A 50% return over 1 year is much better than 50% over 10 years. Annualized ROI converts your total return into an equivalent per-year rate. Formula: ((Final/Initial)^(1/years) - 1) × 100.

For example, $10,000 growing to $15,000 over 3 years is 50% total ROI, but about 14.5% annualized. Use annualized ROI to compare investments with different holding periods.

ROI Formula and Use Cases

The basic formula is: ROI = ((Final Value - Initial Investment) / Initial Investment) × 100. Or, if you know the gain: ROI = (Gain / Initial Investment) × 100.

Common use cases: evaluating stock performance, comparing real estate deals, assessing business projects, and tracking portfolio growth. ROI is a simple, widely understood metric. For compound growth over time, use a compound interest calculator instead.

Frequently Asked Questions

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