ROI Calculator
Calculate your Return on Investment (ROI), net profit, and annualised return — with the full formula shown.
What Does This Tool Do?
Calculate ROI (Return on Investment), net profit, annualised return and investment multiplier. Enter the initial cost and final value — the tool shows both simple ROI and compound annualised return.
Key Features
Simple & Annualised
Both flat ROI and year-on-year rate.
Net Profit
Absolute dollar gain or loss.
Multiplier
Final/Initial ratio shown.
Formula
Full calculation displayed.
How to Use
- Enter the initial investment amount.
- Enter the final value.
- Enter the holding period in years (for annualised ROI).
- Click Calculate ROI.
Frequently Asked Questions
What is ROI?▾
ROI = (Final Value − Initial Investment) / Initial Investment × 100. It expresses the gain or loss as a percentage of the original investment.
What is annualised ROI?▾
Annualised ROI = (Final/Initial)^(1/years) − 1. It converts total ROI into a consistent yearly rate, accounting for compounding.
Is a higher ROI always better?▾
Not necessarily — ROI must be compared against risk, holding period and alternative investments. A 50% ROI over 10 years is much less impressive than 50% in 1 year.