ROI Calculator

Calculate Return on Investment and annualised ROI.

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Total ROI
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Annual ROI (CAGR)
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Net Profit / Loss

What is ROI?

Return on Investment (ROI) is a financial metric used to evaluate the efficiency or profitability of an investment. It compares the net profit gained from an investment relative to its initial cost. ROI is expressed as a percentage, making it easy to compare across different types of investments. A positive ROI means the investment generated a profit, while a negative ROI indicates a loss. ROI is widely used in business, real estate, stock markets, and personal finance to make informed decisions.

How to Calculate ROI

The basic ROI formula is straightforward:
ROI (%) = ((Final Value − Initial Investment) / Initial Investment) × 100
For example, if you invest $5,000 and receive $7,500 after 3 years:
ROI = ((7500 − 5000) / 5000) × 100 = 50%

What is Annualised ROI (CAGR)?

Annualised ROI, also known as CAGR (Compound Annual Growth Rate), tells you the average yearly return of an investment over a given period. It accounts for the compounding effect, making it more accurate than simply dividing total ROI by years.
CAGR (%) = ((Final Value / Initial Investment) ^ (1 / Years) − 1) × 100
Using the same example over 3 years:
CAGR = ((7500 / 5000) ^ (1/3) − 1) × 100 ≈ 14.47%
FAQs

Frequently Asked Questions

Common questions about UUIDs, ULIDs, and this generator tool.

What is a good ROI percentage?
A “good” ROI depends on the type of investment and risk level. For stock market investments, an annual ROI of 7–10% is often considered solid. For business investments, 15–25%+ may be expected. Higher returns typically come with higher risk.
ROI measures the total return over the entire investment period without accounting for time. CAGR (Annualised ROI) breaks that total return into an equivalent yearly rate, allowing fair comparisons between investments of different durations.
Yes. A negative ROI means you lost money on the investment — your final value was less than your initial investment. For example, investing $5,000 and getting back $3,500 results in a –30% ROI.
No. This calculator gives a simple pre-tax, pre-inflation ROI. For real-world accuracy, you should factor in tax on capital gains and adjust for inflation using the real rate of return.
No. Profit (Net Profit/Loss) is an absolute dollar amount — what you gained or lost. ROI is a percentage that shows your return relative to what you put in. Both are useful, but ROI is better for comparing investments of different sizes.