ROI Calculator
Calculate return on investment as a percentage and dollar gain from investment cost and final value.
What is ROI Calculator?
The ROI calculator measures investment return as a percentage. ROI = (gain / cost) × 100.
Formula
ROI = (final value − initial cost) / initial cost × 100. Annualized ROI = (final/initial)^(1/years) − 1.
Worked example
Invested $10k, now worth $13k after 3 years: ROI 30%, annualized 9.1%.
How to use this calculator
- Enter investment cost and current value.
- Time held for annualized return.
Frequently asked questions
ROI vs IRR?
ROI is total return over the period. IRR (internal rate of return) accounts for cash flow timing — useful for investments with intermediate income or expenses.
What's a good ROI?
Stock market historical: 7–10% annualized. Bonds: 3–5%. Real estate: 8–12%. Business investment: 15%+ for high-risk. Compare to alternatives at similar risk.
Should I include taxes?
For "after-tax ROI," subtract capital gains or income tax on the gain. Long-term capital gains (15–20% federal in U.S.) drop ROI accordingly.
Why annualize?
Total ROI doesn't reflect time. 30% over 3 years (9.1% annual) and 30% over 10 years (2.7% annual) are very different. Always check annualized for fair comparison.