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ROI (Return on Investment) Calculator

What is my return on investment?

How it is calculated

Return on investment compares what you gained with what you put in: net gain = final value − cost and ROI = net gain ÷ cost × 100. Cost is the total amount invested, including fees, and final value is what the investment is worth or was sold for, in the same currency. The cost must be above zero. A negative result is a loss. ROI says nothing about how long it took, so a 35% return over one year and over ten years look identical here. Taxes and inflation are not included.

Worked example

You invest 1000 and later it is worth 1350. Net gain: 1350 − 1000 = $350.00. ROI: 350 ÷ 1000 = 0.35, times 100 gives 35.00%. Each unit invested returned 0.35 units of profit on top of the original.

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Common mistakes

  • Leaving fees and commissions out of the cost, which makes ROI look higher than it really was.
  • Entering only the profit in the final-value field. Enter the total value, not the gain.
  • Comparing ROIs of investments held for different periods. A 35% ROI over five years is weaker than 35% over one.
  • Confusing percent with percentage points when comparing two ROI figures.

Sources

About this calculator

This tool calculates return on investment (ROI) — the net profit from an investment expressed as a percentage of its initial cost — by taking the final value, subtracting the original cost to find the profit, and dividing that profit by the cost. A positive ROI means the investment gained value, a negative one means it lost value, and expressing the result as a percentage makes it possible to compare investments of very different sizes on equal footing.

It is used by individual investors evaluating a stock, property or business purchase after the fact, by marketers judging whether an ad campaign's revenue justified its spend, and by small business owners deciding whether a piece of equipment or a project paid for itself. Because ROI on its own doesn't account for how long the money was tied up, people often use it alongside the time period involved to judge whether a return was actually good relative to other options over the same span.

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Comments (1)

  • Editorial team

    ROI says nothing about time: 35% over six months and 35% over five years are very different results, so compare projects over the same period. The tool works from the total you paid and the final value, so include fees, taxes and any extra money you added later, or the percentage will look better than it was. A loss shows as a negative percentage. Which costs do you include for your investments? Post an example.

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