ROI Calculator (Return on Investment)

Measure how much an investment, campaign or project really earned.

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Results

ROI
30%
Net profit / loss
$6,000.00
Annualized ROI
14.02%

ROI (Return on Investment) is net gain divided by the cost of the investment. It puts very different investments — marketing campaigns, equipment, stocks, real estate — on the same scale.

To compare investments held for different lengths of time, add the investment period: the calculator then also returns the annualized ROI (compound annual return).

How to calculate ROI

  1. Enter the total amount invested, including all costs.
  2. Enter the total amount returned or the current value.
  3. Optionally add the holding period in years to see the annualized return.

ROI formula

  • ROI (%) = (Returned − Invested) ÷ Invested × 100
  • Annualized ROI = (Returned ÷ Invested)^(1 ÷ Years) − 1

ROI example

If $20,000 grows to $26,000 in 2 years, net profit is $6,000 and ROI is 30%. The annualized return is 14.02%.

ROI: common questions

What is a good ROI?

It depends on risk and alternatives. As a rule of thumb, ROI should at least beat a risk-free return and inflation.

How do I calculate marketing ROI?

Take the gross profit generated by the campaign, subtract the campaign cost and divide by the campaign cost. Using profit rather than revenue gives a truer picture.

What is the difference between ROI and CAGR?

ROI shows total return and ignores time. CAGR converts the return into an annual compound rate so investments of different lengths can be compared.