ROI calculator
Return on investment as a percentage, in total and per year.
About this calculator
Use this ROI calculator to measure how well an investment did. Enter what you put in and what you got back to see the return on investment as a percentage.
Add how long you held it to get the annualized return, which lets you compare investments held for different lengths of time.
How it works
ROI is the gain divided by the amount invested, times 100. The annualized return spreads it evenly over the years held: (returned ÷ invested)^(1 ÷ years) − 1.
Last reviewed:
Worked example
- Amount invested: $10,000
- Amount returned: $14,500
- Held for: 3 years
Return on investment: 45% (a gain)
Common questions
What is a good ROI?
It depends on the risk and the time involved. Compare it with what you could have earned elsewhere, such as a savings account or an index fund, over the same period.
What is the difference between ROI and annualized return?
ROI is the total return over the whole period. The annualized return is the steady yearly rate that would give the same result, so a 50% ROI over 5 years is about 8.4% a year.
Does ROI include fees and taxes?
Only if you include them. For a true picture, count all costs in the amount invested and use what you actually received after fees.
Sources and further reading
The story behind it
Where the idea came from: In the early 1900s, Donaldson Brown at DuPont developed a formula that made return on investment a standard management measure.
DuPont's finance team wanted a single number to compare very different parts of the business. Brown's method linked profit margins and the money tied up in each part into one return figure, and companies around the world adopted it. Today ROI is used for everything from shares to marketing campaigns.
Why you can trust this calculator
- It runs in your browser. Nothing you type into it is sent anywhere.
- The method is explained on this page, so you can check it yourself.
- Free to use, with no sign-up.
- Results are estimates, not financial advice.
- Spotted a mistake? Tell us and we'll look into it.
After 15 years as a mathematics educator, I built CalculStore to give students, teachers, professionals and anyone working with numbers simple, reliable tools.
Meet the founder