What Is Return on Investment (ROI)?
The Investment Return (ROI) Calculator measures how profitable an investment was: the total return percentage, the net profit, and the annualized (CAGR) return.
Return on investment measures how profitable an investment was, expressed as a percentage of what you put in. It is the universal yardstick for comparing very different opportunities on equal terms — a stock, a property, a marketing campaign or a side project — because it reduces "how much did I make relative to my cost" to a single, comparable number.
Calculating ROI
- Enter the initial investment and its final value.
- Set the holding period in years for the annualized figure.
- Read the ROI, net profit and annualized return.
Common Uses
- Investors comparing the profitability of stocks, funds or property deals.
- Business owners and marketers measuring the return on a campaign or purchase.
- Anyone evaluating whether a past investment was worthwhile, and by how much.
- People comparing investments of different sizes or durations on a like-for-like basis.
The ROI and Annualised Return Formulas
Basic ROI is (final value − initial cost) ÷ initial cost × 100, giving the total percentage gain or loss, while the net profit is simply final value minus cost. To compare investments held for different lengths of time, the annualised return — the compound annual growth rate, or CAGR — is (final ÷ initial)^(1 ÷ years) − 1, which expresses the gain as a steady yearly rate.
The annualised figure matters because a 50% total return over one year is far better than the same 50% over ten. CAGR strips out the time element so two investments can be judged fairly, regardless of how long each was held.
Benefits
- Compare investments of different sizes on equal footing.
- Convert a total return into a comparable yearly rate.
- Runs entirely in your browser — your figures stay private.
Investment Returns Calculated Locally
Return on investment is calculated using financial formulas implemented as JavaScript code running in your browser. Your initial investment, returns, and time period are processed entirely locally — your investment data never leaves your device.