ROI calculator and return on investment calculator for total ROI and annualized ROI from amount invested, amount returned, and investment period or dates. Use the ROI formula, compare time-adjusted returns, 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 a missing value. The tool also shows annualized ROI, which converts a total return into a yearly rate so you can compare investments, projects, campaigns, and purchases held for different lengths of time.
This return on investment calculator is built for quick performance checks when you want to measure how efficiently capital turned into profit. Standard ROI shows the total percentage gain or loss over the full holding period, while annualized ROI adjusts for time. That distinction matters because a 20% return over six months is very different from a 20% return over five years.
You can enter an investment period directly in days, weeks, months, or years, or use the start and end dates to annualize the result automatically. That makes the calculator useful for business cases such as marketing spend, equipment purchases, resale deals, side projects, stocks, and other investments where you need a fast ROI formula calculator rather than a full cash-flow model.
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.
Return on Investment (ROI)
Interpretation varies by asset class
| 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, 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.
Example
Suppose you invest 5,000 in a project and receive 6,250 back at the end. The profit is 1,250, so the total ROI is ((6,250 - 5,000) / 5,000) x 100 = 25%.
If that same return was earned over 3 years, the annualized ROI would be lower than 25% per year because the gain was spread across multiple years rather than earned all at once.
That is why this return on investment calculator is most useful for fast percentage comparisons, while tools such as IRR and NPV are better when timing and multiple cash-flow periods materially affect the decision.
