Calculate return on investment for any project or purchase. Enter your initial investment and final value to see ROI percentage, annualized return, and net profit.
Amount you invested
Current or ending value
How long you held the investment
Total ROI
+50.00%
Annualized ROI
+14.47%
Net Profit / Loss
+$5,000.00
Holding Period
3 years
Your 50.0% total return over 3 years translates to a 14.47% annualized return, which outperforms the historical S&P 500 average.
Status
In Profit
Held For
3 yrs
Rule of 72
5.0 yrs
to double
Invested
$10,000
Break-even
$10,000
Current
$15,000
ROI is one of the most widely used financial metrics for evaluating profitability. It provides a simple way to measure the efficiency of an investment or compare several investments. Total ROI tells you the overall gain or loss, while annualized ROI (CAGR) normalizes the return to a per-year basis so you can compare investments held for different lengths of time. Whether you're evaluating stocks, real estate, business projects, or equipment purchases, ROI helps you make data-driven decisions about where to allocate your capital.
Return on Investment (ROI) measures the gain or loss generated on an investment relative to its cost. It's expressed as a percentage: ROI = (Net Profit / Initial Investment) × 100. A positive ROI means you made money; a negative ROI means you lost money.
Annualized ROI (also called CAGR — Compound Annual Growth Rate) adjusts the total return to reflect an equivalent yearly rate. This lets you compare investments with different holding periods on an equal basis.
When comparing investments with different time horizons, use annualized ROI rather than total ROI. A 30% total return over 5 years (5.4% annualized) is less impressive than a 20% return over 2 years (9.5% annualized).
ROI doesn't account for risk, time value of money, or opportunity cost. Two investments with the same ROI may have vastly different risk profiles. Always consider ROI alongside other metrics like risk-adjusted returns for a complete picture.
Investment Return Calculator
Calculate the total and annualized return on any investment. Enter your purchase price, current value, and holding period to see how your investment has performed.
Net Present Value Calculator
Calculate the net present value (NPV) of a series of future cash flows. Enter your initial investment, discount rate, and expected cash flows to evaluate whether a project or investment is financially worthwhile.