ROI Calculator | Return on Investment Formula and Annualized ROI

Q: What does this ROI calculator do?

This tool calculates return on investment (ROI) from the initial investment and the amount returned. It also shows annualized ROI , which is useful when comparing investments with different holding periods.

Q: What is the difference between ROI and annualized ROI?

Standard ROI measures the total percentage gain or loss over the whole investment period. Annualized ROI converts that total return into a yearly rate, which makes comparison between short-term and long-term investments more meaningful.

Q: Why use ROI instead of profit alone?

Profit shows how much money was made, but ROI shows that return relative to the amount invested. That makes it easier to compare different investments, marketing campaigns, or business projects on the same percentage basis.

ROI calculator: calculate return on investment (ROI) and annualized ROI from amount invested, amount returned, and investment time. Use the ROI formula or solve for a missing value.

Use this ROI calculator to calculate return on investment from the amount invested and the amount returned, or solve for one missing value. It also shows annualized ROI, which is more useful when you want to compare investments held for different lengths of time.

This page works best for quick ROI checks on a project, campaign, purchase, or investment. You can see simple ROI, compare it with annualized ROI, and understand how the same return changes once the investment period is taken into account.

Return on Investment (ROI) formula

\begin{align} ROI &= \frac{R - I}{I} \times 100 \\ \\ \text{Annualized ROI} &= \left(\left(\frac{R}{I}\right)^{1/P} - 1\right) \times 100 \end{align}

Initial Data

Initial investment

Investment revenue

Return on Investment (ROI)

Period

year(s)

Result

Return on Investment (ROI)

15.00 %

Annualized ROI

15.00 %

Result

Positive return

ROI Calculator FAQ

What does this ROI calculator do?
This tool calculates return on investment (ROI) from the initial investment and the amount returned. It also shows annualized ROI, which is useful when comparing investments with different holding periods.

What is the difference between ROI and annualized ROI?
Standard ROI measures the total percentage gain or loss over the whole investment period. Annualized ROI converts that total return into a yearly rate, which makes comparison between short-term and long-term investments more meaningful.

Why use ROI instead of profit alone?
Profit shows how much money was made, but ROI shows that return relative to the amount invested. That makes it easier to compare different investments, marketing campaigns, or business projects on the same percentage basis.

» Return on Investment (ROI) Calculator

Return on Investment (ROI) formula

Initial Data

Result

See also:

ROI Calculator FAQ