ROI Calculator
Calculate ROI, net profit and optional annualized return for an investment entirely locally.
Calculate the return on an investment
The calculation runs entirely in your browser.
Profit
20%
- Net profit
- $2,000.00
- Total cost
- $10,000.00
- Total return
- $12,000.00
- Return multiple
- 1.2×
- Break-even return
- $10,000.00
Formula and values
ROI = (total return − total cost) ÷ total cost. Annualized ROI assumes one starting and one ending value.
$12,000.00 − $10,000.00 = $2,000.00
$2,000.00 ÷ $10,000.00 = 20%
This calculation is for guidance only and is not financial advice.
Good to know
Good to know
The ROI calculator works out the return on investment from the initial investment and the amount returned - including optional additional income and ongoing costs that many simple ROI formulas ignore. It can also annualize the ROI to make investments with different holding periods comparable.
Typical searches include ROI calculator, return on investment, and investment return calculator. Calculation runs locally in the browser. ROI ignores risk, capital lock-up, taxes, and the exact timing of individual cash flows.
Typical use cases
Include additional income and ongoing costs
Add additional income (for example rental income) and ongoing costs (for example maintenance) to get a more realistic ROI than with just the purchase price and sale proceeds.
Make investments with different holding periods comparable
Annualize the ROI to fairly compare a two-year investment with a one-year one, instead of just comparing the absolute ROI.
See profit, loss, and break-even status at a glance
The calculator directly flags whether an investment results in profit, loss, or exactly break-even, instead of just delivering a bare percentage.
Tips for better results
Don’t blindly annualize short holding periods
For holding periods under a year, the annualized return can produce unrealistically high values. Treat it more as a theoretical comparison figure than a forecast in that case.
Don’t mistake ROI for a full investment analysis
ROI does not account for risk, how long capital is tied up, taxes, or the exact timing of individual payments. Use it as a quick comparison figure, not as the sole basis for a decision.
How it works
How it works
Step by step
Features
Features
Additional income and costs
Account for ongoing income and costs alongside the plain investment and return.
ROI can be annualized
Convert the ROI into an annualized return, with warnings for very short holding periods.
Clear profit/loss/break-even status
The result immediately shows whether an investment was profitable, made a loss, or exactly broke even.
Frequently asked questions
Frequently asked questions
What counts as additional income or cost?
For example rental income, dividends, or maintenance costs that occur alongside the plain purchase and sale price and affect the actual ROI.
How exactly does annualizing work?
It converts the total ROI into an equivalent annual return and treats additional income and costs as if they occur at the end of the period.
Does ROI account for taxes or risk?
No. ROI is a simple ratio and does not account for taxes, risk, capital lock-up, or the exact payment timing. Factor these in separately.
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