ROI (Return on Investment) Calculator
Work out your return on investment as a percentage and as an annual rate.
ROI explained
Return on investment compares profit with the cost: (final value − amount invested) ÷ amount invested. It tells you how much you gained or lost in percentage terms.
Why annualized return matters
A 45% gain over 3 years is not the same as 45% in one year. The annualized figure shows the equivalent steady yearly return, so you can compare investments held for different lengths of time.
Worked example
Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.
Tips and common mistakes
- Include fees, taxes and costs in the final value for an honest ROI.
- Compare against a simple index fund as a benchmark.
- Past performance does not guarantee future results.
Frequently asked questions
What is a good ROI?
It depends on risk and time. Long-term stock markets have averaged roughly 7–10% a year before inflation, with large swings.
Does ROI include dividends?
Include them in the final value.
Can ROI be negative?
Yes, if the final value is below what you invested.
Money guides for this topic
All guides →Investing for Beginners: A Simple Plan with the Numbers
A plain-English starter plan for investing: low-cost index funds, regular contributions and why fees matter.
Read guide →Compound Interest Explained (and Why Starting Early Wins)
How compound interest works, the rule of 72, and a simple example showing why time matters most.
Read guide →How to Save Money: 10 Practical Ways with Real Numbers
Ten proven ways to save money, each with the math showing how much you can keep every year.
Read guide →Related calculators
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Open calculator →CAGR Calculator
Calculate compound annual growth rate for an investment, business or any value.
Open calculator →Results are estimates and not financial advice.