ROI Calculator

Measure return on investment from an initial amount, ending value, extra costs, and holding period. Compare both simple ROI and annualized return.

Initial investment

Ending value

Additional costs

Holding period (years)

ROI

30.00%

Net profit

$3,000.00

Value after costs

130.00%

Annualized return

9.14%

ROI measures net profit divided by your original investment. Use the annualized result when you want to compare investments held for different lengths of time.

How to Use

Enter the initial amount invested or spent to start the project, trade, property, or campaign. Use the full cash outlay, not just the down payment or headline price.
Add the ending value or proceeds you expect to receive. For a completed investment, use the actual exit value after the sale or liquidation.
Include extra costs such as fees, commissions, repairs, taxes, or carrying costs so the ROI result reflects real economics rather than gross gain.
Set the holding period in years to estimate annualized return. That makes it easier to compare a short-term gain with a multi-year investment.
Use simple ROI for a quick profitability check, then lean on annualized return when you need to compare opportunities with different timelines.

Frequently Asked Questions

What does ROI mean?

ROI means return on investment. It measures net profit relative to the original amount invested, which makes it useful for quickly comparing whether a project or purchase created enough value to justify its cost.

Why include additional costs?

Fees and other costs reduce your real return even when the ending value looks strong on paper. Including them gives a more honest ROI figure and prevents gross return from overstating performance.

What is annualized return?

Annualized return converts a multi-year gain or loss into an average yearly growth rate so different investments can be compared more fairly. This is especially important when one opportunity earns 20 percent in six months and another earns 20 percent over four years.

Can ROI be negative?

Yes. If your ending value after costs is lower than your original investment, ROI will be negative. That makes the calculator useful for downside analysis as well as for upside projections.