ROI Calculator
Calculate your return on investment instantly. See ROI percentage, annualised return (CAGR), and total gain or loss.
Calculate Your ROI
Measure the return on your investment
Return on Investment
50.00%
You gained $5,000.00 on your investment
$5,000.00
profit
14.47%
per year (CAGR)
$15,000.00
end value
$10,000.00
starting value
How to Use This Calculator
Enter your initial investment -- the amount you originally put in. Then choose whether you know the final value of your investment or the gain amount.
Toggle between Final Value (what the investment is worth now) and Gain Amount (the profit or loss figure) depending on what you have to hand.
Set the time period in years or months. The calculator will instantly show your total ROI, annualised ROI (CAGR), and the overall gain or loss.
Use the currency selector to switch between GBP, USD, and EUR for localised formatting.
Understanding Your Results
ROI Percentage -- The total return on your investment expressed as a percentage. A positive value means a profit; a negative value means a loss.
Annualised ROI (CAGR) -- The compound annual growth rate. This is the most useful metric for comparing investments held for different periods.
Total Gain / Loss -- The absolute monetary difference between what you invested and what you ended up with.
Final Value -- The total value of the investment at the end of the period, including the original capital and any gains or losses.
Frequently Asked Questions
What is ROI and how is it calculated?
ROI (Return on Investment) measures the profitability of an investment as a percentage. The formula is: ROI = ((Final Value - Initial Investment) / Initial Investment) x 100. For example, if you invest 10,000 and it grows to 15,000, your ROI is 50%.
What is the difference between ROI and annualised ROI?
Simple ROI shows the total return over the entire investment period, regardless of how long it took. Annualised ROI (also called CAGR - Compound Annual Growth Rate) converts this to an equivalent yearly rate, making it easier to compare investments held for different lengths of time.
What is a good ROI?
A "good" ROI depends on the type of investment and its risk. Historically, the stock market averages around 7-10% annualised return. Property investments typically aim for 8-12%. Higher-risk investments should offer higher potential returns to compensate for the added risk.
Can ROI be negative?
Yes, a negative ROI means you lost money on the investment. If your final value is less than your initial investment, the ROI will be negative. For instance, investing 10,000 and ending up with 8,000 gives an ROI of -20%.
Does this calculator account for inflation?
This calculator shows nominal ROI, which does not adjust for inflation. To find the real (inflation-adjusted) return, subtract the average annual inflation rate from the annualised ROI. For example, a 10% annualised ROI with 3% inflation gives roughly a 7% real return.
How do I compare investments with different time horizons?
Use the annualised ROI (CAGR) to compare investments fairly. A 50% total return over 5 years (about 8.4% annualised) is not as strong as a 30% return over 2 years (about 14% annualised). Annualised ROI normalises the return to a per-year basis.
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