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Free ROI Calculator

Easily calculate the Return on Investment (ROI) and profits for your business, marketing campaigns, or personal investments.

Last Updated: 15 Jan 2026

Investment Details

Amount Invested ($)

Amount Returned ($)

Investment Duration (Optional)

Enter your investment details

Results will appear here automatically

What is Return on Investment (ROI)?

Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment. It calculates the percentage return relative to the investment's cost, making it easy to compare different investment opportunities regardless of their size or type.

ROI is one of the most widely used financial metrics because it's simple, versatile, and provides a clear measure of investment performance. Whether you're evaluating stocks, real estate, marketing campaigns, business projects, or personal investments, ROI helps you understand if your money is working effectively for you.

Why Use Our Free ROI Calculator?

Instant Calculations

Calculate ROI percentage, total profit, and annualized returns instantly. No complex formulas or manual calculations required.

Annualized ROI (CAGR)

Automatically calculate annualized ROI when you provide the investment duration. Compare investments over different time periods accurately.

Investment Comparison

Compare different investment opportunities side-by-side. Determine which investments offer the best returns for your capital.

Common Use Cases for ROI Calculator

Business Investments

Marketing Campaigns
Calculate ROI for advertising campaigns, social media marketing, or content marketing. Determine which marketing channels deliver the best returns.
Equipment Purchases
Evaluate ROI for business equipment, software, or technology investments. Determine if purchases will pay for themselves over time.
Employee Training
Calculate ROI for training programs, certifications, or education investments. Measure the return on human capital development.

Personal Finance

Stock Investments
Calculate ROI for stock purchases, dividends, or portfolio performance. Compare returns across different stocks or investment strategies.
Real Estate
Evaluate ROI for rental properties, home improvements, or real estate investments. Calculate returns including rental income and appreciation.
Education & Skills
Calculate ROI for education, courses, or skill development. Determine if investing in yourself will pay off through higher earnings.

Understanding ROI Calculation

ROI Formula

ROI = ((Current Value - Cost) / Cost) × 100

Example: If you invested $1,000 and it grew to $1,200:

ROI = (($1,200 - $1,000) / $1,000) × 100 = 20%

Calculate Profit

Subtract the initial investment cost from the current or final value. This gives you the total profit or gain from the investment.

Divide by Cost

Divide the profit by the original investment cost. This gives you the return ratio, showing how many times your investment has grown.

Convert to Percentage

Multiply by 100 to convert the ratio to a percentage. This makes it easy to compare different investments regardless of size.

Understanding Annualized ROI (CAGR)

What is Annualized ROI?

Annualized ROI (also called Compound Annual Growth Rate or CAGR) shows the average annual return rate over the investment period. This allows you to compare investments with different timeframes on an equal basis.

Example: A 50% ROI over 2 years equals approximately 22.5% annualized ROI. This helps you understand the yearly performance rather than just the total return.

Frequently Asked Questions

How is ROI calculated?

ROI is calculated by subtracting the initial investment cost from the final value of the investment, then dividing this new number by the cost of the investment, and finally multiplying by 100.

What is a good ROI percentage?

A good ROI depends on the investment type and risk level. For stocks, 7-10% annual ROI is considered good. For real estate, 8-12% is typical. For marketing campaigns, 200-400% ROI is often achievable. Compare ROI to your opportunity cost and risk tolerance.

Can ROI be negative?

Yes, ROI can be negative if the investment loses value. A negative ROI means you've lost money. For example, if you invest $1,000 and it's worth $800, your ROI is -20%.

Does this calculator compute Annualized ROI?

Yes, if you provide the investment duration, our tool will automatically calculate the Annualized ROI (CAGR) to help you compare investments over different time periods.

What's the difference between ROI and profit?

Profit is the absolute dollar amount gained (e.g., $200 profit). ROI is the percentage return relative to the investment (e.g., 20% ROI). ROI allows comparison across different investment sizes, while profit shows actual dollar gains.

Should I include all costs in ROI calculation?

Yes, include all costs: purchase price, fees, commissions, taxes, and any other expenses. For accurate ROI, use the total cost of investment, not just the principal amount. This gives you the true return on your capital.