ROI Calculator
Calculate return on investment, net profit, and annualized ROI for any investment.
Frequently Asked Questions
What is ROI?
ROI (Return on Investment) is a measure of how much profit or loss an investment generates relative to its cost. The formula is: ROI (%) = (Net Profit / Initial Investment) × 100, where Net Profit = Final Value − Initial Investment. A positive ROI means you made money; a negative ROI means you lost money.
What is a good ROI?
A "good" ROI depends on the investment type and time period. For stocks, a 7–10% annualized ROI is often considered reasonable (roughly in line with long-term market averages). For real estate, 8–12% is common. For short-term trading or business investments, expectations vary widely. Always compare ROI against a benchmark relevant to that asset class and time horizon.
What is the difference between ROI and annualized ROI?
ROI is the total return over the entire investment period, regardless of how long it took. Annualized ROI (also called CAGR — Compound Annual Growth Rate) converts that total return into an equivalent yearly rate, making it easy to compare investments held for different lengths of time. For example, a 50% total ROI over 3 years equals a 14.47% annualized ROI, because (1.1447)^3 ≈ 1.50.