ROI calculator

ROI calculator: the basics

Measure net gain or loss relative to all entered costs, with an optional annualized rate for the chosen holding period.

How to use the inputs

• Initial investment / cost: Enter the initial investment or cost from zero to 1 billion.
• Final value / amount received: Enter the final value or total amount received, from zero to 1 billion. Include proceeds consistently; do not count the same money twice.
• Additional costs (optional): Enter extra costs from zero to 1 billion; blank means zero. Initial and additional costs together must be at least 0.01 currency units.
• Investment period (optional): Leave blank for total ROI only, or enter 0.1 to 60 years, including fractional years. Zero or negative durations are invalid.

Change an input to update the results. Add up to four scenarios to compare separate assumptions; reset affects only the selected scenario.

Understanding the results

• Total cost combines initial investment and additional costs. Net gain or loss is final value minus total cost. ROI expresses that net result as a percentage of total cost.
• Annualized ROI appears only with a valid duration. It is a constant compound annual rate, not the total ROI divided by years.
• Bars compare total ROI magnitudes; the labels retain loss signs. Each scenario has independent costs, proceeds and an optional period.

The formula, in words

Let I be initial cost, C additional costs, V final value and Y years. Total cost T = I + C. Net gain G = V − T. ROI (%) = G / T × 100.

When Y is supplied, annualized ROI (%) = ((V / T) raised to (1 / Y) − 1) × 100. Zero proceeds mean −100% ROI and, with a valid duration, −100% annualized ROI.

Assumptions and limits

• Costs are treated as a single upfront total and the final value as a single endpoint. Timing of interim cash flows is not modeled; this is not IRR.
• There is no automatic compounding in total ROI. Optional annualization assumes an equivalent constant annual compound rate, including fractional years.
• Taxes, financing charges, fees and inflation are excluded unless reflected in your entered amounts. Annualized illustrations are not promised returns. Very extreme ratios that exceed finite numeric capacity are rejected.

Currency results display whole units; other numbers show at most one decimal place. Calculations keep full precision unless whole units must be rounded up for break-even. Rounded figures may not add up exactly.

Results of a trillion or more use scientific notation with up to three decimal places; for example, 1E12 means one trillion. Very small gains may round to zero.

Examples below use USD and local number formatting. Country selection changes currency labels, formatting and terminology; it does not convert money or automatically apply local tax or lender rules.

Worked example

This fixed example uses the calculator’s default inputs; it does not change when you edit a scenario. Any example interest or return rate is an assumption, not a guaranteed outcome.

Initial investment / cost

USD 10,000

Final value / amount received

USD 15,000

Additional costs (optional)

USD 2,000

Investment period (optional)

Not supplied

Adding USD 10,000 and USD 2,000 gives USD 12,000. Subtracting that cost from USD 15,000 leaves USD 3,000. Dividing the gain by total cost gives 25%. No annualized result is shown because the period is blank.

ROI

25%

Net gain or loss

USD 3,000

Total cost

USD 12,000

Annualized ROI (with period)

Enter a period

Common questions