Advanced ROI Calculator | Calculate Your Return on Investment

Advanced ROI Calculator

Measure the profitability of an investment with our powerful calculator. See your Net Profit, total ROI, and Annualized ROI, complete with visual charts and data saving.

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Save & Load Calculations

Save your current calculation to the cloud, or load a previously saved one. Data is shared publicly for this demo.

Saved Calculations

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 measures the amount of return on a particular investment, relative to the investment’s cost.

To calculate ROI, the net profit (or return) of an investment is divided by its cost. The result is typically expressed as a percentage.

Formula: ROI = ( (Final Value of Investment – Initial Investment) / Initial Investment ) * 100

How to Use Our ROI Calculator (User Manual)

  1. Select your preferred currency: Use the dropdown menu to choose from 20 global currencies. This will update the symbols on all monetary fields.
  2. Enter your ‘Initial Investment’: This is the total amount of money you first invested.
  3. Enter the ‘Final Value of Investment’: This is the total value of your investment at the end of the period (including your initial capital).
  4. Input the ‘Investment Duration’: Enter how long the investment was held, then select whether the duration is in “Months” or “Years”.
  5. Click ‘Calculate’: You’ll instantly see your Net Profit, Total ROI, and Annualized ROI, along with visual charts.
  6. (Optional) Click ‘Save Calculation’: If you find the calculation useful, click this button to save it to our public database for future reference.

Understanding Your Results

This calculator provides two crucial types of ROI:

  • Total ROI: This is the simple, total percentage return you made over the entire duration. It’s useful, but it doesn’t account for *how long* it took to get that return. A 50% ROI in 1 year is much better than a 50% ROI in 10 years.
  • Annualized ROI: This is a more powerful metric. It calculates the average rate of return you earned *per year*. This makes it much easier to compare different investments with different timeframes (e.g., comparing a 5-year stock investment to a 6-month bond).

Frequently Asked Questions (FAQ)

What is a “good” ROI?

A “good” ROI is highly subjective and depends on the asset class, risk tolerance, and time horizon. As a general benchmark, the S&P 500 has an average annual return of about 8-10% over the long term. Many investors aim to “beat the market,” so anything above that might be considered “good.”

How is Annualized ROI calculated?

Annualized ROI is calculated using the Compound Annual Growth Rate (CAGR) formula, which is:
Annualized ROI = ( (Final Value / Initial Value) ^ (1 / Number of Years) ) – 1.
Our calculator automatically converts your duration (even in months) into the “Number of Years” for this formula.

Can I use this calculator for stocks, real estate, or business investments?

Yes! This calculator is universal. For ‘Initial Investment,’ use your total cost basis (e.g., stock purchase price + fees, or property cost + renovation expenses). For ‘Final Value,’ use the current market value or the price you sold it for.