Business & Finance

ROI Calculator (Return on Investment)

Calculate Return on Investment (ROI) and annualized ROI for marketing campaigns, real estate flips, stocks, and business capital projects.

What this calculator does

The ROI Calculator (Return on Investment) estimates your result instantly from the values you enter, using standard business & finance formulas. Calculate Return on Investment (ROI) and annualized ROI for marketing campaigns, real estate flips, stocks, and business capital projects. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.

ROI Calculator Results

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Total ROI (%)

  • Net Profit $0.00
  • Annualized ROI (%) —
  • Average Annual Return —
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Average Annual Return

What This Means

About ROI Calculator (Return on Investment)

The ROI Calculator measures the efficiency and profitability of an investment by comparing net profit against total cost of investment.

Formula & Mathematical Calculation

ROI (%) = [ ( Net Profit / Cost of Investment ) ] × 100 = [ ( Revenue - Cost ) / Cost ] × 100

Annualized ROI (%) = [ ( 1 + ROI / 100 )^(1 / Years) - 1 ] × 100

Calculation Example

$15,000 Investment Generating $22,500 Total Revenue over 2 Years: Net Profit = $7,500. Total ROI = +50.0% | Annualized ROI = +22.47% per year.

Key Benefits

  • Calculates absolute ROI and annualized percentage returns
  • Applicable to business projects, real estate, stocks, and advertising spend
  • Shows net dollar profit and profit-to-cost ratio
  • Essential metric for capital allocation decisions
  • Fast, accurate, and free tool

How to Use this Calculator

  1. Enter Total Amount Invested (Cost)
    Input all capital and expenses incurred.
  2. Enter Total Amount Returned (Revenue)
    Input gross revenue or final sales proceeds.
  3. Enter Investment Length (Years)
    Input investment timeframe.
  4. Calculate ROI
    Click Calculate to view ROI and annualized percentage return.

Assumptions & Limitations

What the calculation assumes

  • Every value you enter is treated as an exact, known amount.
  • Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
  • Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
  • Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
  • Amounts are unit-agnostic: results are returned in the same currency you enter.

What it does not cover

  • ROI Calculator (Return on Investment) produces estimates for education and planning, not a quote, offer or professional advice.
  • Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
  • Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
  • Figures are only as accurate as the inputs you supply — check them before acting on the result.
  • For decisions with lasting financial impact, confirm the numbers with a qualified professional.

Frequently Asked Questions

A good ROI depends on the asset class and risk level: 7% to 10% annually is standard for stock index funds, 15% to 20%+ is typical for private real estate flips, and 200%+ is common for high-performing marketing campaigns.

It subtracts the cost of investment from the total revenue for the net profit, then divides that net profit by the cost and multiplies by 100. For a $15,000 investment returning $22,500, the net profit is $7,500 and the total ROI is 50%.

When you enter the number of years, the calculator compounds the total ROI down to a yearly rate: it raises one plus the total ROI to the power of one over the years, subtracts one, and shows the percentage. Over 2 years a 50% total ROI is about 22.47% annualized.

The cost of investment and the total revenue must both be greater than zero, or the calculator stops with 'Enter a valid cost of investment and total revenue.' The years field is optional and only drives the annualized figures.

Total ROI is the whole-period return; annualized ROI restates it as an equivalent compound yearly rate. The calculator also shows a simple total-over-years figure, but the annualized rate is the accurate way to compare investments of different lengths.

Free to use, no account needed. Calculations run in your browser, so nothing you type is sent to a server. Results are estimates — how we build and check our calculators.