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ROI Calculator (Return on Investment)

Enter what you invested and what it is worth now.

Enter your values

What the investment is worth, or what you received, at the end.

Leave empty to skip the yearly figure.

Result

Return on investment (ROI)
50%
Gain
5,000.00
Average yearly return (annualised)
14.47%
  • ROI ignores fees, tax and what else the money could have earned. Past results do not predict future ones.

How to use ROI Calculator (Return on Investment)

  1. Enter the amount you invested.
  2. Enter the final value, which is what the investment is worth or what you received.
  3. Optionally enter the number of years you held it.
  4. Read the ROI, the gain or loss and the average yearly return.

About this tool

Return on investment compares what you gained with what you put in. A gain of 500 on an investment of 1,000 is a 50% ROI. A loss gives a negative percentage.

ROI alone ignores time. Making 50% in one year is a very different result from making 50% in ten years. If you enter the years held, the calculator also shows an annualised figure, which is the steady yearly rate that would produce the same final value. It is the compound annual growth rate (CAGR).

Remember what ROI leaves out. It does not include fees, tax, inflation or the return you could have earned elsewhere, and it says nothing about risk. It is a simple way to compare results, not a forecast.

How it is calculated

ROI = (final value − amount invested) ÷ amount invested × 100.

Annualised return = ((final value ÷ amount invested)^(1 ÷ years) − 1) × 100.

Worked examples

  • Invest 1,000 and end with 1,500 after 3 years: the ROI is 50% and the average yearly return is 14.47%, not 50% divided by 3.
  • Invest 2,000 and end with 1,700: the ROI is -15%, a loss of 300.00.

Tips for better results

  • Always include the time held when comparing two investments.
  • Subtract fees and any tax from the final value before entering it, if you want the net return.
  • A negative annualised return can only be worked out if the final value is above zero.

Frequently asked questions

How do I calculate ROI?

Subtract the amount invested from the final value, divide by the amount invested and multiply by 100.

What is annualised ROI?

It is the steady yearly rate that would grow your starting amount to the final value over the years held.

Why is the yearly return not just ROI divided by years?

Because returns compound. A 50% total return over 3 years is about 14.47% a year, not 16.67%.

Is a high ROI always good?

Not necessarily. ROI says nothing about risk or time, so compare it with the risk taken and the period.

Are my numbers saved or sent anywhere?

No. The calculation runs in your browser on your own device. Nothing you type is sent to Paul Digital or any other server.

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Privacy

The calculation runs in your browser on your own device. The numbers you type are not sent to Paul Digital or any other server. Results are estimates from the numbers you enter and are not financial, tax or legal advice.