ROI Calculator
Calculate return on investment (ROI) and annualized ROI for any investment.
| Scenario | Profile | Return on Investment (ROI) |
|---|---|---|
Base Settings | Default inputs and growth assumptions | 50.00% |
Conservative | Lower yield, higher inflation, haircuts | 35.00% |
Optimistic | Favorable yield, lower inflation, growth | 65.00% |
Stress Test | Severe economic crash and high inflation | 5.00% |
Educational estimate. Not financial advice.
Very high historical return of 50.00% reflects outstanding investment compounding per Investment Return Benchmarks.
Investing $50,000 and returning $75,000 over 2 years generates a nominal ROI of 50.00%. Capital gains tax drag costs $3,750.
How to Use the ROI Calculator
Measure the profitability of your investments using our free ROI calculator. Whether you are analyzing stock performance, real estate investments, or business capital expenses, calculating the Return on Investment (ROI) is crucial. Input your initial investment and total returns to instantly compute your net profit, total ROI, and annualized return.
- Scenario Mode: Scenario Mode
- Goal to Calculate: Goal to Calculate
- Amount Invested ($): Amount Invested ($)
- Amount Returned ($): Amount Returned ($)
- Target ROI Goal (%): Target ROI Goal (%)
- Investment Duration: Investment Duration
- Duration Unit: Duration Unit
- Adjust for Inflation: Adjust for Inflation
- Annual Inflation Rate (%): Annual Inflation Rate (%)
- Tax on Capital Gains (%): Tax on Capital Gains (%)
CAGR vs XIRR: Calculating Investment Returns & Irregular Cash Flows
Compare Compound Annual Growth Rate vs Extended Internal Rate of Return for steady vs irregular transaction scenarios.
Read Full Guide →What is the formula for calculating ROI?
The formula for Return on Investment (ROI) is: ROI = ((Current Value - Initial Cost) / Initial Cost) * 100. This calculates the percentage gain or loss relative to the investment's original cost.
What is the difference between absolute ROI and annualized ROI?
Absolute ROI shows the total percentage growth of an investment over its entire duration, ignoring time. Annualized ROI calculates the geometric average return per year, allowing investors to compare the performance of assets held for different lengths of time.
What is a good return on investment (ROI)?
A good ROI depends on the asset class and your risk tolerance. Historically, the stock market averages about 7% to 10% annualized ROI after inflation. Real estate returns often range from 6% to 12%, while business ventures target higher margins to offset higher risks.
Calculate compound annual growth rate (CAGR) of an investment over time.
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