ROI Calculator
Free return-on-investment (ROI) calculator — work out the profit and percent return between an initial amount and a final amount. Single-period ROI in your browser.
Return on Investment is the simplest way to express how much a single investment grew (or shrunk) relative to what you put in.
The formula
profit = final value − initial investment
ROI = profit ÷ initial × 100
A $10,000 investment that grew to $13,500 produced a $3,500 profit and a 35% ROI.
What this isn’t
This is simple ROI for a single period. It does not annualize. A 35% ROI over 1 year and a 35% ROI over 10 years are very different stories — the former is excellent, the latter is mediocre (about 3% per year compounded). For an apples-to-apples annual figure across investments of different durations, you want the compound annual growth rate (CAGR):
CAGR = (final ÷ initial)^(1 ÷ years) − 1
It also assumes one initial outlay and one final value. For investments you added to or pulled money out of along the way, you really want a money-weighted return (IRR), which requires a full cash-flow schedule.
Including fees, dividends and taxes
Whatever you actually paid is your “initial”; whatever you actually walked away with is your “final”. Subtract fees and taxes, add dividends and coupons. Garbage in, garbage out — the formula is fine; what you plug in is the part you have to be careful with.
What’s a “good” ROI?
Depends on the period and the risk. Stocks (US equities, long-term) have averaged ~10% annually. Bonds, less. Cash, even less. A 10% one-year return on a low-risk asset is great; on a speculative coin flip, it’s barely compensation. Always compare against what you could have held instead — the opportunity cost — rather than against zero.
Worked examples
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$10,000 grew to $13,500
Return: 35% — a $3,500.00 gain on a $10,000.00 investment.
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$5,000 dropped to $4,200 — a loss
Return: -16% — a $800.00 loss on a $5,000.00 investment.
Frequently asked questions
What is ROI?
Return on Investment — the fraction of the original amount you gained (or lost), expressed as a percentage. ROI = (final − initial) ÷ initial × 100. It's the simplest single-period return measure: how much did your money grow, relative to what you started with?
Is ROI the same as annual return?
Not necessarily. This calculator returns the **total** return over the whole period, regardless of how long that period was. A 35% return over 1 year is excellent; a 35% return over 10 years is mediocre (~3% per year compounded). For an apples-to-apples annual figure, look up the CAGR formula: (final ÷ initial)^(1 ÷ years) − 1.
How do I handle fees, dividends, or additional contributions?
Net them in: use the *all-in* numbers. If you put in $10,000 and added another $2,000 mid-way, your "initial" for a clean ROI is muddier — you really want a money-weighted return (IRR), not a simple ROI. For dividends/coupons, add them to the final value before computing. For fees and taxes, subtract them. This calculator does pure compute(final, initial); the right inputs are on you.
Can ROI be negative?
Yes — that means the investment lost money. The result will show a negative percent and the loss in absolute terms. ROI doesn't have a lower bound for assets that can go below zero (some derivatives), but for a normal investment the worst case is −100% (you lose everything).
What's a "good" ROI?
It depends entirely on the period and the risk. Over one year: stocks average ~10% (US equities, long-term), bonds ~4–5%, savings accounts ~4–5% recently, real estate variable. A 10% one-year return on a low-risk asset is great; a 10% return on a high-risk speculative asset is barely compensation for the risk. Compare against an alternative you could've held instead, not against zero.