ROI Calculator
Calculate return on investment (ROI), net profit, and annualized return from your initial and final investment values.
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Frequently asked questions
- How do I calculate ROI?
- ROI is net profit divided by the initial investment, expressed as a percentage: (final value minus initial investment) divided by initial investment, times 100. Enter your initial and final values and the calculator returns the ROI and net profit.
- What is annualized return and why does it differ from ROI?
- Total ROI measures the whole gain regardless of time, while annualized return (CAGR) shows the equivalent yearly rate. A 50 percent ROI over 5 years is a much lower annualized return than 50 percent in one year. Enter a holding period to see the annualized figure.
- Can ROI be negative?
- Yes. If the final value is less than your initial investment, ROI is negative, meaning a loss. The calculator shows this as a net loss and a negative percentage.
- Should I include fees and taxes?
- For an accurate figure, include buying and selling fees in your initial investment and use the after-tax final value. This calculator uses the raw values you enter, so adjust them to reflect real costs.
- Does ROI account for cash flows like dividends?
- This simple ROI compares a single start and end value. If you received dividends or made additional contributions, add them to the final value or use a more detailed money-weighted return method.