ROI Calculator — Return on Investment

Calculate the return on investment (ROI) for any investment. Optionally enter the investment duration to see your annualized ROI.

What Is ROI?

Return on Investment (ROI) measures the efficiency of an investment. It is expressed as a percentage of the net gain or loss relative to the initial investment cost.

ROI Formula

ROI = ((Final Value − Initial Investment) / Initial Investment) × 100

Frequently Asked Questions

What is a good ROI?
A good ROI depends on the investment type and risk. The S&P 500 has historically returned about 10% per year on average. For business investments, 15–20%+ annually is generally considered strong.

What is the difference between ROI and annualized ROI?
Simple ROI measures total return over the entire period. Annualized ROI converts it to an equivalent yearly rate, making it easier to compare investments of different durations.

Can ROI be negative?
Yes. A negative ROI means you lost money — the final value is less than your initial investment. This is common in high-risk investments and early-stage businesses.