ROI Calculator
Calculate return on investment from cost and gain — ROI percentage, net profit and annualized ROI with calculation steps shown. Free, instant, no signup.
About the ROI Calculator
Return on investment (ROI) is the universal yardstick for whether money put in was worth it: ROI = net profit ÷ initial investment × 100. This free ROI calculator works from either angle — enter your initial investment plus the final value, or the investment plus the profit — and instantly shows the ROI percentage, net profit and the substituted calculation steps.
A raw ROI ignores time, which makes a 50% return over 10 years look the same as 50% in one year. That is why the calculator also computes annualized ROI when you enter a holding period: annualized ROI = ((final ÷ initial)^(1/years) − 1) × 100, the same compounding logic as CAGR. Investing 100,000 and getting back 150,000 after 3 years is a 50% total ROI but only 14.47% per year.
Business owners in Pakistan and India use ROI to compare a marketing campaign against inventory investment, property investors compare rental projects, and traders benchmark returns against bank deposits and mutual funds. Everything runs privately in your browser.
How to Use the ROI Calculator
- 1Enter your initial investment amount.
- 2Choose whether you know the final value or the net profit, and enter it.
- 3Optionally enter the holding period in years for annualized ROI.
- 4Read the ROI percentage, profit and calculation steps instantly.
Frequently Asked Questions
How do I calculate ROI with an example?
ROI = (final value − initial investment) ÷ initial investment × 100. If you invested 100,000 and it is now worth 150,000, ROI = 50,000 ÷ 100,000 × 100 = 50%. If you know the profit directly, just divide it by the investment.
What is annualized ROI and why does it matter?
Annualized ROI spreads the total return evenly over the holding period with compounding: ((final ÷ initial)^(1/years) − 1) × 100. A 50% gain over 3 years is 14.47% per year — far easier to compare against a 15% bank profit rate or another investment than the raw 50% figure.
What is a good ROI?
Compare against alternatives with similar risk. Bank deposits in Pakistan have recently offered 10–20% per year and stock-market index returns have historically averaged 10–15% in the region, so a business or property project is usually expected to beat those to justify its extra risk and effort.
Can ROI be negative?
Yes — whenever the final value is below what you put in. Investing 200,000 and getting back 170,000 gives ROI = −30,000 ÷ 200,000 × 100 = −15%. The calculator shows losses honestly rather than hiding them.
Should ROI include costs like fees and taxes?
For a true picture, yes. Add purchase fees, brokerage, maintenance and taxes to the initial investment (or subtract them from the final value) before calculating. A property bought for 5,000,000 with 300,000 in transfer costs that sells for 6,000,000 returns 700,000 on 5,300,000 — 13.2%, not 20%.
What is the difference between ROI and CAGR?
ROI is the total percentage gain over the whole period; CAGR is the equivalent steady yearly rate. They meet through the annualized-ROI formula — for a 1-year holding they are identical. Use CAGR (or annualized ROI) to compare investments held for different lengths of time.