Quick answer
ROI = (final value − amount invested) ÷ amount invested × 100. An investment of $1,000 that ends at $1,500 has an ROI of 50% and a gain of $500; over 3 years the annualized ROI is (1.5^(1/3) − 1) × 100 ≈ 14.47%.
Enter the amount invested, the final value and, optionally, the years held. The calculator returns ROI, gain and annualized ROI.
Related tools: Contribution Margin Calculator: Per-unit contribution and contribution margin ratio. Break-Even Calculator: Units and revenue needed to cover fixed and variable costs. Markup Calculator: Selling price from cost and markup percentage.
How to use the ROI Calculator
- Enter amount invested ($) (above 0).
- Enter final value ($) (0 or more).
- Optionally, enter years held (above 0).
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Amount invested | A number, in $ | > 0 |
| Final value | A number, in $ | ≥ 0 |
| Years held (optional) | A number | > 0 |
Formula and method
Formula
ROI = (final − invested) ÷ invested × 100; annualized = ((final ÷ invested)^(1/years) − 1) × 100
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Simple and annualized return.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Amount invested = 1000; Final value = 1500.
| Result | Value |
|---|---|
| ROI | 50% |
| Gain | $500.00 |
Example 2
Inputs: Amount invested = 1000; Final value = 2000; Years held = 5.
| Result | Value |
|---|---|
| ROI | 100% |
| Gain | $1,000.00 |
| Annualized return | 14.8698% |
Example 3
Inputs: Amount invested = 500; Final value = 400.
| Result | Value |
|---|---|
| ROI | -20% |
| Gain | -$100.00 |
The first line is the headline result (rOI). Below it the rOI Calculator lists gain, which describe the same case from other angles. IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Why annualize
A 50% return over 3 years is not the same as 50% in one year. Annualizing, (final ÷ invested)^(1/years) − 1, gives the steady yearly rate that would produce the same result: about 14.47%. The calculator needs the years to do this.
What ROI leaves out
ROI ignores risk, fees, taxes and the timing of cash flows. For investments with several deposits and withdrawals, IRR is a better measure.
How the result changes with amount invested
Holding every other input at the first worked example, this table changes only amount invested. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Amount invested | ROI | Gain |
|---|---|---|
| 500 | 200% | $1,000.00 |
| 1000 | 50% | $500.00 |
| 2000 | -25% | -$500.00 |
| 4000 | -62.5% | -$2,500.00 |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Amount invested: entering "0" shows "Amount invested must be greater than 0." beside that field and no result.
Choosing between the ROI Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Contribution Margin Calculator](/business/contribution-margin-calculator/) | selling price per unit and variable cost per unit | Contribution per unit |
| [Break-Even Calculator](/business/break-even/) | fixed costs, price per unit and variable cost per unit | Break-even units |
| [Markup Calculator](/business/markup-calculator/) | cost and markup | Selling price |
| [Margin Calculator](/business/margin-calculator/) | cost and revenue | Gross margin |
| [Payback Period Calculator](/business/payback-period/) | initial investment and annual cash flow | Payback period |
Background: business metrics
Business ratios depend on exactly which costs and revenues you include, so read each page's definition. Two common checks: break-even units = fixed costs ÷ (price − variable cost per unit), so $50,000 of fixed costs with a $10 price and $5 variable cost breaks even at 10,000 units; and net profit margin = net profit ÷ revenue, so $20,000 profit on $100,000 revenue is 20%.
Return on investment ignores time: 20% over five years is far less impressive than 20% in one, so compare returns over the same period.
Assumptions and limitations
- Annualized needs years
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for amount invested to confirm this.
Frequently asked questions
Can ROI be negative?
Yes. A final value below the invested amount gives a negative ROI.
What is a good ROI?
It depends on risk and time; compare with alternatives over the same period.
What is the difference between ROI and IRR?
IRR accounts for the timing of several cash flows.
What does the ROI Calculator calculate?
Return on investment, with optional annualized return. It returns ROI and Gain.
What formula does the ROI Calculator use?
ROI = (final − invested) ÷ invested × 100; annualized = ((final ÷ invested)^(1/years) − 1) × 100. Simple and annualized return.
What do I need to enter in the rOI Calculator?
You enter Amount invested ($) and Final value ($). Optional: Years held.
How is the result rounded or limited?
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice. Annualized needs years.
What is an example of a rOI result?
With amount invested 1000 and final value 1500, the rOI is 50%.
Related calculators
- Contribution Margin Calculator — Per-unit contribution and contribution margin ratio.
- Break-Even Calculator — Units and revenue needed to cover fixed and variable costs.
- Markup Calculator — Selling price from cost and markup percentage.
- Margin Calculator — Profit, gross margin and markup from cost and revenue.
- Payback Period Calculator — Time to recover an investment from steady cash flow.
- Net Revenue Retention Calculator — Net and gross revenue retention for a starting recurring-revenue base.
- CPM Calculator — Cost per thousand impressions.
Sources
- Standard time-value-of-money relations (e.g. Brealey, Myers & Allen, Principles of Corporate Finance)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.