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ROI Calculator

Input

Calculate return on investment, net profit or loss, total return percentage, and estimated annualized ROI.

Input

Output

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ROI Calculator

Calculate your return on investment with this free online ROI Calculator. Enter your initial investment and total return to estimate your ROI percentage, net profit or loss, and total return as a percentage of the original investment.

Enter the holding period in months to estimate annualized ROI and compare investments held for different lengths of time. Results update as you enter figures, and you can reset the calculator to start again.

This is a basic estimate. It does not account for taxes, fees, inflation, or cash flows at different times.

Quick guide

How to use

Enter the initial investment, which must be greater than zero.
Enter the total return, including the original amount returned where applicable. Zero is allowed.
Review ROI, net profit or loss, and total return percentage as they update.
Optionally enter the holding period in months to estimate annualized ROI.
Use Reset to clear the inputs.

Use the same currency and accounting basis for both amounts. The calculator does not verify the figures.

Details

About this tool

What Is Return on Investment (ROI)?

Return on investment, or ROI, is a percentage used to measure investment profit or loss relative to its initial cost. It helps show how much you gained or lost compared with the amount invested.

ROI can help review a business purchase, marketing campaign, project, or other investment. A single ROI figure does not show every factor that affects performance, such as risk, fees, or the time needed to earn the return.

ROI Formula

ROI = (Total Return − Initial Investment) ÷ Initial Investment × 100

Net profit or loss is total return minus initial investment. For example, an initial investment of $10,000 and total return of $12,500 produce a $2,500 profit and 25% ROI. The total return is 125% of the original investment; this is different from ROI.

Understanding the results

A positive ROI indicates a gain, 0% means total return equals the initial investment, and a negative ROI indicates a loss. Total return percentage expresses the full amount received as a percentage of the initial investment, including the original amount when it is part of the return.

Annualized ROI estimates a yearly return using the holding period. It can help compare different time periods, but depends on the calculation method and assumptions. Treat it as an estimate, especially when returns vary or additional cash flows occur.

Limitations

The calculator does not automatically account for taxes, transaction fees, inflation, investment risk, or deposits and withdrawals at different times. Include relevant costs in your inputs. For investments with multiple cash flows, net present value or internal rate of return may be more appropriate. Results are for general educational use and are not financial advice.

ROI and total return are different

ROI measures gain or loss relative to the original investment. Total return percentage measures the full amount received against the original investment. For $5,000 invested and $5,750 returned, net profit is $750, ROI is 15%, and total return percentage is 115%.

When an ROI calculator is useful

Use a basic ROI estimate to review business spending, marketing campaigns, completed projects, budgets, or investment returns. Compare figures calculated on a consistent basis. ROI alone does not show risk, liquidity, or whether a result can be repeated.

Annualized ROI is an estimate

The holding period adds time context when comparing returns. Annualized results depend on the calculation method and assumptions; they may be less representative when money is added or withdrawn at different times.

What this calculator excludes

Taxes and fees not included in your inputs, inflation, multiple cash flows, and investment risk are not modeled. For multiple dated cash flows, a more detailed measure such as net present value or internal rate of return may be more suitable.

Practical inputs

ROI example

$10,000 investment

Initial investment: $10,000; total return: $12,500

Net profit: $2,500; ROI: 25%; total return percentage: 125%.

Help

Frequently asked questions

What is ROI?

ROI measures net profit or loss relative to the initial investment as a percentage.

How do I calculate ROI?

Subtract initial investment from total return, divide the difference by initial investment, then multiply by 100.

What is the difference between ROI and total return percentage?

ROI measures the gain or loss. Total return percentage measures the entire amount received as a percentage of the investment. A $10,000 investment returning $12,500 has 25% ROI and 125% total return percentage.

Can ROI be negative?

Yes. If total return is less than the initial investment, ROI is negative. Receiving $8,000 after investing $10,000 is a $2,000 loss and −20% ROI.

What is annualized ROI?

It expresses a return on a yearly basis using the holding period. It can help compare different periods, but depends on the annualization method and its assumptions.

Do I need to enter a holding period?

No. It is optional for ROI, net profit or loss, and total return percentage. Enter months when you want an annualized estimate.

Does the calculator include taxes and fees?

No. Taxes, fees, inflation, and cash flows at different times are not automatically included unless reflected in your inputs.

Is this calculator financial advice?

No. It provides a basic calculation and does not assess risk, future performance, or personal circumstances.