ROI Calculator
Calculate return on investment (ROI) from your initial cost and final value, with annualised ROI for multi-year investments.
Our free ROI calculator works out your return on investment as a percentage, your net profit, and — if you enter a duration — your annualised ROI so you can compare investments held for different lengths of time.
How to calculate ROI
ROI is calculated by subtracting the initial investment from the final value, dividing by the initial investment, and multiplying by 100 to get a percentage.
ROI = ((Final value − Initial cost) ÷ Initial cost) × 100
For example, if you invest $10,000 and it grows to $13,500, your ROI is ((13,500 − 10,000) ÷ 10,000) × 100 = 35%.
How to calculate annualised ROI
Annualised ROI (also called CAGR) shows the equivalent yearly return, which lets you compare investments held for different periods. The formula is:
Annualised ROI = ((Final value ÷ Initial cost) ^ (1 ÷ years) − 1) × 100
Using the same example over 3 years: (13,500 ÷ 10,000) ^ (1 ÷ 3) − 1 = 10.5% per year.
What is a good ROI?
A "good" ROI depends on the type of investment and the time period. As a rough benchmark, the S&P 500 has historically returned around 10% per year. For marketing spend, many businesses target an ROI of 5:1 (400%) or higher. Always compare ROI against alternatives and account for risk.