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ROI Calculator

Calculate return on investment and annualized return.

$
$

Include dividends or income you received.

years

Add this to see the annualized return.

Return on investment (ROI)

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Profit or loss
Annualized return
Value multiple

Results are estimates for general information only and are not financial advice. Check important figures with a qualified professional or your lender. Read our disclaimer.

When to use it

Use this calculator to see how well an investment or project paid off. It works for shares, funds, property, a side business, a marketing campaign or new equipment. It turns two simple numbers, what you put in and what you got back, into a percentage you can compare with other choices.

How to use it

  1. Choose your Currency.
  2. Enter the Amount invested, the total you put in.
  3. Enter the Amount returned (final value). Include any dividends, rent or other income you received along the way.
  4. Optionally, enter the Investment period in years to see the annualized return.
  5. Read the Return on investment (ROI), the Profit or loss, the Annualized return and the Value multiple.

The value multiple tells you how many times your money grew. 1.5× means you got back one and a half times what you put in.

Worked example

You invested $10,000 and three years later it is worth $13,500, including dividends. The ROI is +35%, a gain of $3,500. The value multiple is 1.35×.

With a period of 3 years, the annualized return is 10.52% a year. That is lower than 35 ÷ 3, about 11.7%, because each year’s growth builds on the last.

Compare that with a savings account paying 4% a year: over three years it would turn $10,000 into about $11,249, so the investment did better, though with more risk.

Tips

  • Always add the time period. A total ROI on its own hides how long the money was tied up.
  • Count every cost. Fees, repairs, software, shipping and your own time all reduce the real return.
  • Compare like with like. Check the annualized return of each option over the same period.
  • Use it before you invest. Enter a hopeful and a cautious estimate of the amount returned to see the range of outcomes.

Reading a loss

If the amount returned is lower than the amount invested, the ROI shows as a negative number and the value multiple drops below 1×. For example, $10,000 that is now worth $8,000 is a 20% loss and a multiple of 0.8×.

Common mistakes

  • Dividing ROI by the years. Simple division overstates the yearly rate. Use the annualized figure instead.
  • Leaving out income received. Forgetting dividends or rent makes the return look smaller than it was.
  • Ignoring risk. A higher ROI is not always better if it came with a big chance of losing money.

Results are estimates for general information only. Past returns do not guarantee future results.

Frequently asked questions

What is a good ROI?

It depends on the time and the risk. A 35% return over one year is excellent, but over ten years it is weak. That is why the annualized return is more useful for comparing investments held for different lengths of time.

What is the difference between ROI and annualized return?

ROI is the total gain or loss as a percentage of what you put in. Annualized return spreads that over the years you held the investment, as a steady yearly rate with growth on growth. It lets you compare a 2-year investment fairly with a 7-year one.

Should I include fees and taxes?

Yes, for a true picture. Add buying fees to the amount invested, and take selling fees and any tax off the amount returned. Otherwise the ROI will look better than what you actually earned.

Can ROI be negative?

Yes. If you got back less than you put in, the tool shows a loss, a negative ROI and a value multiple below 1.

Does it work for business projects, not just investments?

Yes. Enter the total cost of the project as the amount invested and the total money it brought in or saved as the amount returned.

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