ROI Calculator
Measure how much an investment, project or campaign earned compared with what it cost, and what that is per year.
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ROI Calculator by TheCalcTools
How the ROI Calculator works
Enter what you put in, any other costs, what you got back in total, and how long it took. Net profit is the return minus all costs. ROI is net profit as a percentage of total cost.
Because a 50% return over one year is very different from 50% over ten, the annualised ROI converts the result into the steady yearly rate that would produce the same outcome. ROI is simple and widely used, but it ignores risk, timing of cash flows and what else you could have done with the money.
The formula
Worked example
$25,000 invested plus $3,000 of costs returned $41,000 over 3 years:
| Invested and costs | $25,000 + $3,000 |
|---|---|
| Return | $41,000 |
| Time | 3 years |
- Net profit = 41,000 − 28,000 = $13,000.
- ROI = 13,000 ÷ 28,000 = 46.4%.
- Annualised ROI = (41,000 ÷ 28,000)1/3 − 1 = 13.6% a year.
Result:
| Net profit | $13,000 |
|---|---|
| ROI | 46.4% |
| Annualised ROI | 13.6% |
| Return multiple | 1.46 |
Frequently asked questions
What is a good ROI?
It depends on the risk and the alternatives. Compare with what you could earn elsewhere with similar risk, not with a fixed number.
What counts as a cost?
Everything you spent to get the return: purchase, fees, labour, advertising, upkeep. Leaving costs out inflates ROI.
What is the difference between ROI and CAGR?
ROI is the total gain relative to cost. CAGR (or annualised ROI) turns that into a yearly rate. For a single lump sum, see the investment return calculator.
Can ROI be negative?
Yes. If the return is below the cost, the net profit and ROI are negative. A total loss is −100%.
Sources and further reading
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.