Amount invested, Amount returned, Holding period (optional)
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How this calculator works
ROI compares net profit with the amount invested. It is simple and widely used, but it ignores time: a 50% return in one year is far better than 50% over ten. Enter the holding period to see the annualized figure, which makes investments of different lengths comparable.
Formula
- ROI = (amount returned − amount invested) / amount invested × 100
- Annualized ROI = (amount returned / amount invested)^(1 / years) − 1
Worked example
5,000 invested, 6,500 returned after 3 years
- Amount invested
- 5,000
- Amount returned
- 6,500
- Holding period (optional)
- 3
Result30.00% ROI
Net gain of 1,500.00 on 5,000.00 invested.
Things to keep in mind
- Include all costs (fees, taxes, upkeep) in the amount invested for a realistic figure.
- Figures are estimates for planning. They are not financial advice, and they ignore taxes and fees unless stated.
Frequently asked questions
What does an ROI of 100% mean?
You doubled your money: the net profit equals the amount invested.
What is annualized ROI?
The yearly rate that would produce the same total return over the holding period. It lets you compare a 2-year investment with a 10-year one.
Is ROI the same as profit margin?
No. ROI divides profit by the amount invested; profit margin divides profit by revenue.
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Results are estimates based on the values you enter and the published method shown above. They do not replace professional medical, financial or legal advice. Method reviewed October 7, 2026. About this site