ROI Calculator
Determine the efficiency of your investment with our free Return on Investment (ROI) Calculator. Whether you are evaluating a marketing campaign, a stock purchase, or a business venture, this tool calculates both your total return and your Annualized ROI.
Investment Data
Input*Time period is required for Annualized ROI calculation.
Analysis
PerformanceNet Profit
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Total Return
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How to Calculate ROI (Return on Investment)
ROI is the universal metric for determining profitability. It answers the simple question: “For every dollar I put in, how many dollars did I get back?”
The Basic Formula
The standard formula for ROI is simple:
For example, if you spend $1,000 on marketing and generate $1,500 in sales, your profit is $500. Your ROI is ($500 / $1,000) x 100 = 50%.
Why Annualized ROI Matters
Standard ROI has a flaw: it ignores time. A 20% return over 1 month is amazing. A 20% return over 10 years is terrible.
Annualized ROI fixes this by calculating the average yearly growth rate. This allows you to compare investments of different lengths. For example, earning 50% over 5 years is actually equal to an annualized return of about 8.45%.