ROI Calculator
Enter what you invested and what it is worth now to get your gain, your return on investment as a percent, and optionally the annualized return over the years you held it.
Last updated November 2, 2026
Leave blank to skip the annualized return.
Result
ROI = 40%
| Measure | Value |
|---|---|
| Gain | $4,000.00 |
| ROI | 40% |
| Annualized return | 11.87% a year |
Estimate only. Excludes fees, taxes and inflation.
Show the work
Formula: ROI = (final value - invested) / invested x 100
- Entered: invested $10,000.00, final value $14,000.00, held 3 years.
- Gain: $14,000.00 - $10,000.00 = $4,000.00.
- ROI: $4,000.00 / $10,000.00 x 100 = 40%.
- Annualized: ($14,000.00 / $10,000.00)^(1 / 3) - 1 = 11.87% a year.
Result: ROI = 40%
How ROI is calculated
ROI = (final value − amount invested) ÷ amount invested × 100
Return on investment is the gain as a share of what you put in. A positive ROI means you made money, a negative ROI means you lost money, and 0% means you broke even.
ROI alone ignores time. The annualized return, also called the compound annual growth rate, spreads the result over the years you held the investment: (final ÷ invested)^(1 ÷ years) − 1. A 40% ROI over 3 years is about 11.87% a year, not 13.33%.
See how we calculate for the formulas, sources and review schedule behind every calculator.
Also useful alongside this calculator: Percentage Calculator.
Annualized return
Enter the number of years to see the compound annual rate. This lets you compare investments held for different lengths of time. Years can be a decimal, so 18 months is 1.5.
The calculation uses only the start and end values. It does not include fees, taxes or inflation, and it does not account for money added or withdrawn along the way.
Why the same ROI can mean different things
A 40% ROI sounds the same whether it took one year or five, but the yearly rate is very different. Held for 1 year it is 40% a year, for 2 years 18.32% a year, for 3 years 11.87% a year and for 5 years 6.96% a year. Years can be fractions: 40% in 18 months, or 1.5 years, is 25.15% a year. Compare investments on the annualized figure whenever the holding periods differ.
The annualized return assumes a steady yearly rate, which real investments rarely deliver. Treat it as a way to put two results on the same footing, not as a forecast.
Losses and the gain needed to recover
A loss and the gain that undoes it are not the same percentage. The $2,000 that falls to $1,500 has an ROI of −25%, but getting from $1,500 back to $2,000 is a gain of $500 on $1,500, or 33.33%. A 50% loss needs a 100% gain to recover.
Because the formula divides by the amount invested, the loss is measured against the original amount and the recovery against the smaller one.
What to enter as invested and final value
Enter everything you paid, including purchase costs, in the invested amount. For the final value, include money you received along the way, such as dividends or rent, together with what the holding is worth now.
To see a net figure, subtract costs from the final value first. If $200 of fees is paid at the end of the $10,000 to $14,000 example, the final value becomes $13,800, the ROI 38% and the annualized return about 11.33% a year. The tool has no field for deposits or withdrawals in the middle of the period; for those, a calculation that tracks each cash flow is needed.
General information, not financial advice
This calculator gives a general estimate from the numbers you enter. It is not financial or tax advice, and your actual results can differ. Check important decisions with a qualified professional or the official source.
How to use the ROI Calculator
- Enter the amount you invested.
- Enter the final value, including any money you received back.
- Optionally enter the number of years you held it.
- Read the gain, the ROI and the annualized return, then use Copy, Print or Share.
Worked example
You invest $10,000 and it grows to $14,000 over 3 years. The gain is $4,000, so the ROI is $4,000 ÷ $10,000 = 40%. The annualized return is (14,000 ÷ 10,000)^(1 ÷ 3) − 1, about 11.87% a year.
| Invested | Final value | ROI |
|---|---|---|
| $1,000 | $1,200 | 20% |
| $5,000 | $6,000 | 20% |
| $10,000 | $14,000 | 40% |
| $500 | $1,000 | 100% |
| $2,000 | $1,500 | −25% |
Frequently asked questions
What is a good ROI?
It depends on the risk and the time held. A return should be compared with the alternatives over the same period, which is why the annualized rate helps.
What is the difference between ROI and annualized return?
ROI is the total gain as a percent of the amount invested. The annualized return is the equivalent yearly rate that compounds to that total.
Can ROI be negative?
Yes. If the final value is below the amount invested, the ROI is negative.
Does this include fees and taxes?
No. It uses only the numbers you enter. Subtract fees and taxes from the final value first if you want a net result. This is not investment advice.
Are my numbers stored or sent anywhere?
No. The calculation runs in your browser and nothing you enter is saved or uploaded.