ROI Calculator
Calculate your Return on Investment (ROI) and annualized returns. Compare investment performance and make informed financial decisions.
Formula:ROI = (Gain - Cost) / Cost × 100%
Investment Returns
ROI
+50.00%
Annualized ROI
+14.47%
per year (CAGR)
Net Profit$5,000
Total Return$15,000
Investment Period3 years
Investment Details
Enter your investment amounts
1,000100,000
0200,000
years
Investment Comparison
Invested
$10,000
Returned
$15,000
ROI Breakdown
Initial Investment$10,000
Final Value$15,000
Net Profit+$5,000
How ROI is Calculated
Understanding the formulas
Simple ROI Formula:
ROI = ((Final Value - Initial Investment) / Initial Investment) × 100
ROI = (($15,000 - $10,000) / $10,000) × 100 = 50.00%
Annualized ROI (CAGR) Formula:
CAGR = ((Final Value / Initial Investment)^(1/years) - 1) × 100
CAGR = (($15,000 / $10,000)^(1/3) - 1) × 100 = 14.47%
Compare Different Scenarios
| Final Value | Net Profit | ROI | Annualized |
|---|---|---|---|
| $8,000 | -$2,000 | -20.0% | -7.2% |
| $10,000 | +$0 | +0.0% | +0.0% |
| $12,500 | +$2,500 | +25.0% | +7.7% |
| $15,000 | +$5,000 | +50.0% | +14.5% |
| $20,000 | +$10,000 | +100.0% | +26.0% |
What if my investment grew more?
See how different final values affect your ROI
$5,000$15,000$30,000
ROI
+50.0%
Annualized ROI
+14.5%
Net Profit
$5,000
Personalized Insights
2 insights based on your inputs
Strong Performance
14.5% annualized return beats the historical S&P 500 average of ~10%. Excellent investment!
Compare Annualized Returns
Always compare investments using annualized ROI (CAGR), not total ROI. A 50% return over 10 years (~4% annual) is worse than 20% over 2 years (~10% annual).
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Frequently Asked Questions
ROI measures the profitability of an investment relative to its cost. It's calculated as (Net Profit / Investment Cost) × 100. A 50% ROI means you earned 50 cents for every dollar invested.
Annualized ROI (CAGR) shows the equivalent annual return rate, making it easier to compare investments of different lengths. A 3-year investment with 50% total ROI has an annualized ROI of about 14.5%.
A "good" ROI varies by investment type. Stock market historically returns 7-10% annually. Real estate: 8-12%. Savings accounts: 1-5%. High-risk investments may target 15%+. Always compare to similar investments and consider risk.
Profit is the absolute dollar amount gained. ROI is the percentage return relative to the investment. A $10,000 profit on a $100,000 investment (10% ROI) is different from $10,000 on a $50,000 investment (20% ROI).
ROI doesn't account for time (use annualized ROI), risk, opportunity cost, or external factors like inflation. It also doesn't consider cash flow timing or reinvestment. Use alongside other metrics for better decisions.
How this works
Calculations are run entirely in your browser. No inputs are sent to our servers and no account is required. Formulas follow standard US definitions from the IRS and the CFPB where applicable; international users should confirm local tax and regulatory rules apply.
What this tool can’t do
When to consult a professional
This is a software engineering tool, not financial advice. Run the math here, then take the result to a certified financial planner, CPA, or your bank before making a decision that materially affects your money.
Sources
- [1]Consumer Financial Protection Bureau (CFPB)Official sourceconsumerfinance.govAccessed Apr 21, 2026
US consumer finance regulator; authoritative on mortgage disclosures, APR rules, credit cards.
Joseph OrdunaFounder & Software Engineer
Full-stack software engineer specializing in embedded systems, web architecture, and AI/ML. Founder of Practical Web Tools. Built the gesture-controlled drone IP acquired by KD Interactive (Aura Drone, sold on Amazon).
Investment Returns
ROI
+50.00%
Annualized ROI
+14.47%
per year (CAGR)
Net Profit$5,000
Total Return$15,000
Investment Period3 years