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ROI Calculator
Use this ROI calculator to measure your total return, return multiple, and annualized return over a specified investment period.
ROI Calculator
Enter your numbers and the result updates straight away.
Outputs
Planning estimate only. Verify assumptions before making a financial decision.
If you invest $10,000 and the final value is $13,000 after two years, your net return is $3,000, total ROI is 30%, and annualized ROI is approximately 14.02%.
How this calculation works
Total ROI divides net gain by initial investment. Return multiple divides final value by initial investment. Annualized ROI converts that multiple into a compound annual growth rate using the entered holding period. The model assumes no interim cash flows; use IRR when cash moves in or out during the period.
How to interpret the result
ROI is scale- and timing-sensitive. Two projects can share total ROI but require different holding periods, risk, or interim funding. Compare annualized returns only when inputs use consistent after-fee, after-tax, or pre-tax definitions.
Limitations
Results are educational planning estimates. They do not include every tax, legal, accounting, financing, or business-specific consideration and are not professional advice.
Sources and further reading
Formula and example
If you invest $10,000 and the final value is $13,000 after two years, your net return is $3,000, total ROI is 30%, and annualized ROI is approximately 14.02%.
Common use cases
- Measure total gain relative to cost.
- Compare holding periods using annualized return.
- Express outcomes as dollars, percentage, and multiple.
- Screen projects before deeper NPV analysis.
- Separate return calculation from risk judgment.
ROI Calculator FAQ
What is ROI?
Return on investment compares the gain or loss from an investment with its initial cost. A positive ROI indicates a gain, while a negative ROI indicates a loss.
How is annualized ROI different from total ROI?
Total ROI measures the return across the complete investment period. Annualized ROI converts that result into a compounded yearly rate, making periods of different lengths easier to compare.
What does a 1.5x return mean?
A 1.5x return means the final value is 1.5 times the initial investment. That corresponds to a 50% total ROI.
Does ROI account for risk or inflation?
No. This calculator measures the mathematical return only. It does not adjust for risk, inflation, taxes, financing costs, or the timing of individual cash flows.
Why can total ROI and annualized ROI differ substantially?
Total ROI covers the entire holding period. Annualized ROI converts the final-value multiple into an equivalent compounded yearly rate.
What if there are interim cash flows?
Use IRR or XIRR with dated cash flows. A start-and-end ROI can misstate performance when contributions or distributions occur during the period.
Should fees and taxes be included?
Use net cash amounts if you want investor-level realized return, and state the convention. Gross and net ROI should not be compared directly.