ROI Calculator — Calculate Return on Investment & Profit
ROI Calculator
Calculate return on investment and profit or loss on a project, business, or financial investment.
Investment details
Investment summary
What ROI tells you
Return on investment (ROI) measures how much money an investment produces relative to the amount invested. It is useful across business, real estate, marketing, and personal finance decisions.
A positive ROI means the investment generated more than it cost, while a negative ROI means the investment lost money after costs. Annualized ROI adds a time-based comparison for investments held over different periods.
Using this formula helps you compare opportunities and decide which investments are more efficient or profitable over time.
- Higher ROI generally indicates a more efficient investment.
- Net profit subtracts additional costs from total return.
- Annualized ROI adjusts results for time.
- ROI should be reviewed alongside risk and time horizon.
Frequently asked questions
How is ROI calculated?
ROI is typically calculated as net profit divided by the total investment cost, then multiplied by 100.
What is annualized ROI?
Annualized ROI adjusts total return over time to express the average yearly percentage return.
Should I include fees or maintenance costs?
Yes. Additional costs should be considered in the net profit calculation because they reduce the actual return on the investment.
Is ROI the same as profit?
No. Profit is the dollar amount gained or lost, while ROI is the percentage of return relative to the investment amount.