ROI calculator
Measure the return on an investment, project, campaign, or purchase by comparing ending value with total invested cost.
ROI
0%What it does
The calculator compares ending value with initial investment plus additional costs. It returns net gain or loss, total ROI, and annualized ROI.
Use it for investments, side projects, property improvements, marketing campaigns, equipment purchases, or other decisions where cost and value can be estimated.
How to use it
Enter total starting investment and ending value. Add any extra costs that should count against the return, then enter the holding period in years.
If the investment had cash flows during the period, add them to the ending value or costs as appropriate, or use a more detailed IRR calculation outside this simple ROI estimate.
Formula
ROI equals net gain divided by total invested cost. Net gain is ending value minus initial investment and additional costs. Annualized ROI estimates the yearly compound rate from total invested cost to ending value.
What affects it
ROI changes when either the ending value or total invested cost changes. Fees, repairs, taxes, platform costs, advertising spend, closing costs, and other expenses can lower ROI if they are left out of the original estimate.
Timing matters too. A 30% return over one year is very different from a 30% return over ten years. That is why the calculator also shows annualized ROI, which spreads the return across the holding period.
Common mistakes
One mistake is counting the final value but ignoring costs paid along the way. Another is comparing two investments with different timelines using only total ROI. Annualized ROI can make comparisons more useful, though it is still simplified.
ROI also does not measure risk by itself. A higher ROI may come with higher uncertainty, less liquidity, more work, or a greater chance of loss. Use the result as one input, not the whole decision.
FAQ
What counts as additional cost? Any cost required to earn the return, such as fees, improvements, ad spend, maintenance, or transaction costs.
Can ROI be negative? Yes. If ending value is lower than total invested cost, the calculator shows a loss.
Is ROI the same as profit margin? No. ROI compares gain with investment cost, while margin compares profit with revenue.