ROI Calculator
Last updated: July 2026
Calculate net profit, return on investment, and annualized ROI.
Return on investment
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- Net profit: —
- Annualized ROI: —
- Ending value plus income: —
On this page
Quick summary: Calculate net profit, return on investment, and annualized ROI. Enter the requested values, calculate, review the result, and compare more than one realistic scenario before making a decision.
Read the complete guide
What this calculator does
The ROI Calculator measures return on investment by comparing gain or loss with the amount originally invested. It provides a quick percentage for comparing projects or investments of different sizes.
How to use the calculator step by step
Enter the initial investment and the final value or net gain, depending on the fields shown. Use consistent definitions so that costs and returns are not counted twice.
How the calculation works
A common ROI formula is ROI = (gain from investment − cost of investment) ÷ cost of investment × 100. If an investment costs 10,000 and later produces 12,500 in total value, ROI is 25%.
Worked example and scenario testing
A project costs 8,000 and generates 9,600 after all included revenues and costs. The gain is 1,600, so ROI is 1,600 ÷ 8,000 × 100 = 20%.
How to interpret your result
Positive ROI means the measured return exceeded the investment amount, while negative ROI indicates a loss. ROI alone does not show how long it took to earn the return.
Accuracy, assumptions, and limitations
ROI can be misleading when comparing investments with different time horizons, risk levels, taxes, financing costs, or cash-flow timing.
Common mistakes to avoid
Do not confuse revenue with profit. Include the correct investment cost and be clear about whether fees, taxes, and operating expenses are already included.
Privacy and browser-based calculations
Only financial amounts are required for the calculation. Avoid entering confidential account or business identifiers.