Calculate ROI from invested amount, return amount, and time period. See total return, annualized ROI, formula steps, and solve for investment, return, or ROI.
If you need to compare a simple return with time-adjusted performance, check whether a result is positive or negative, or understand when to use ROI vs IRR or ROI vs NPV, this page covers the basic workflow. For multi-period cash-flow analysis, you can also compare the result with IRR and NPV.
ROI Calculator FAQ
What does this ROI calculator do?
This tool calculates return on investment (ROI) from the initial investment and the amount returned, and it can also solve for a missing value. It also shows annualized ROI, which is useful when comparing investments with different holding periods.
How do you calculate return on investment?
Use the basic ROI formula: ROI = ((return - investment) / investment) x 100. If you invest 1,000 and get back 1,150, the profit is 150 and the ROI is 15%.
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.
What is a good ROI?
There is no universal cutoff for a “good” ROI. A good result depends on the risk, the time involved, available alternatives, and your required return. In practice, many users compare ROI with annualized ROI, financing costs, or more advanced metrics such as IRR and NPV before making a decision.
Can ROI be negative?
Yes. If the amount returned is lower than the amount invested, ROI is negative, which means the investment lost money over the measured period.
What is the difference between ROI and IRR?
ROI measures the total percentage return between the starting amount and ending amount. IRR is a time-sensitive discount rate based on a full series of cash flows. ROI is simpler and faster for one overall investment result, while IRR is more useful when cash flows happen across multiple periods.
What is the difference between ROI and NPV?
ROI expresses return as a percentage of the amount invested. NPV measures how much value an investment creates in money terms after discounting future cash flows. ROI is useful for quick comparisons, while NPV is stronger for capital budgeting and discounted cash-flow analysis.
How do you calculate ROI in Excel?
A common Excel version is =((returned_amount-invested_amount)/invested_amount)*100. If you need a yearly rate instead of a total return, annualize it based on the investment period rather than relying on simple ROI alone.
When should I use this ROI calculator?
Use it for quick checks on investments, projects, inventory flips, equipment purchases, and marketing campaigns when you know the amount invested and the amount returned. If the case has many separate cash flows over time, an IRR or NPV calculator is usually more appropriate.
What does 15% ROI mean?
A 15% ROI means the investment returned 15% more than the amount invested. Example: invest $1,000, receive $1,150 back → profit = $150, and ROI = 150/1,000 × 100 = 15%. It does not by itself say how long that return took — a 15% ROI over 1 year is very different from 15% over 10 years, which is why annualized ROI matters for comparison.
Is 4.5% a good ROI?
It depends on the context. For a single year, 4.5% is roughly in line with typical savings accounts, government bonds, or barely above average inflation — modest for equity investments, which have historically averaged higher annual returns over the long run. For a low-risk, short-term, or capital-preservation goal, 4.5% can be perfectly reasonable. Compare it against the annualized ROI of alternatives with similar risk before judging it as good or bad.
