The ROI Calculator (Return on Investment) measures how profitable an investment is relative to its cost. Enter what you invested and what you got back to instantly see your ROI percentage and net profit.

How to Use This Calculator

1. Enter the Investment Cost — the total amount you spent.
2. Enter the Return Value — the total value you received (including the original investment).
3. Optionally enter a Time Period in years for annualized ROI.
4. Click Calculate.

What Is a Good ROI?

It depends on the asset class and timeframe. The S&P 500 has historically returned ~10% annually before inflation. Real estate typically returns 8–12% annually with leverage. A business investment earning 15–20% is generally considered strong. A “good” ROI also depends on risk — a guaranteed 5% ROI can be better than a risky 15% opportunity.

Always compare ROI against alternative uses of the same money. If you can earn 5% in a high-yield savings account risk-free, a business venture needs to return substantially more to justify the risk and effort.

Limitations of ROI

• ROI doesn’t account for time — a 50% ROI over 10 years is much worse than 50% in 1 year.
• It ignores risk — two investments with the same ROI can have very different risk profiles.
• It doesn’t account for taxes on gains.
• It doesn’t factor in opportunity cost.

Frequently Asked Questions

What’s the difference between ROI and annualized ROI?

Simple ROI is the total percentage gain regardless of time. Annualized ROI (CAGR) converts this to a per-year rate, allowing fair comparison between investments held for different durations.

Can ROI be negative?

Yes. A negative ROI means you lost money on the investment. The calculator will correctly show a negative percentage in that case.