ROI Calculator - Precise Calculators

ROI Calculator

Calculate your Return on Investment and Annualized Growth Rate.

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Real-World ROI Examples

Stocks

Tech Stock Trade

Initial Buy Cost: $1,000
Sold Value: $1,250
Net Profit: +$250

ROI Calculation

25.00%

($250 / $1,000) × 100

Marketing

Ad Campaign

Ad Spend: $500
Total Sales: $2,000
Net Return: +$1,500

ROI Calculation

300.00%

($1,500 / $500) × 100

Real Estate

House Flip

Total Cost: $200k
Selling Price: $240k
Net Profit: +$40k

ROI Calculation

20.00%

($40k / $200k) × 100

Frequently asked questions

What is ROI (Return on Investment) and why is it useful?

ROI is a financial metric that measures how much profit you earn from an investment compared to its cost. In simple terms, it shows how efficiently your money is working for you. By comparing the gain (return) to the original cost, ROI helps you assess the performance and efficiency of different investments in a clear, data-driven way.

How does this ROI calculator measure my return?

This easy-to-use calculator applies a standard ROI formula to determine your percentage return. It takes your basic input values:

  • Amount Invested (initial cost)
  • Amount Returned (final value)

Then it uses this formula:

ROI (%) = ((Amount Returned - Amount Invested) / Amount Invested) × 100

The tool turns these inputs into an accurate output so you can quickly evaluate how well your investment performed.

What is Annualized ROI (Annualized Growth Rate)?

Annualized ROI is an advanced way to model your investment performance over time. Instead of only showing total profit, it converts that result into a yearly growth rate, based on how long you held the investment. This annualized metric makes it easier to analyze and compare the performance of different investments in a more strategic, time-adjusted way.

How does the calculator determine the Annualized Return?

When you input the holding period (usually in years), the calculator uses a financial formula that spreads your total return across that time. It typically follows a compound-growth model like:

Annualized Return = ((Amount Returned / Amount Invested) ^ (1/n)) - 1

where n is the number of years. This formula analyzes your total ROI and generates a yearly output that reflects the dynamic performance of your investment per year.

What inputs do I need for this ROI calculator?

You only need a few simple inputs:

  • Amount Invested – the original cost of the investment
  • Amount Returned – the final value or revenue you received
  • Time Duration (optional) – how long you held the investment, for annualized analysis

Using these inputs, the tool can calculate basic ROI with the standard formula, and, if you include time, also provide an annualized return for deeper performance analysis.

What is considered a “good” ROI in this model?

A “good” ROI depends on the investment type, risk level, market conditions, and time frame. Generally, a higher margin between cost and return is better, but it must be justified by the risk taken. Many users compare their calculated ROI against benchmarks (like stock market averages or savings rates) to evaluate whether their performance is strong, needs improvement, or is not worth the risk.

Can ROI be negative, and what does a negative result indicate?

Yes, the calculator can generate a negative ROI. If the output from the ROI formula is below 0, it means:

Amount Returned < Amount Invested

This indicates a loss instead of a profit. A negative ROI is an important signal in your financial analysis, showing that the investment did not recover its cost and may need to be reconsidered in your overall strategy.

What’s the difference between simple ROI and Annualized Return?
Simple ROI measures total performance:
ROI (%) = ((Amount Returned - Amount Invested) / Amount Invested) × 100
It focuses on overall input vs. output.
Annualized Return adjusts that result for time:
Annualized Return = ((Amount Returned / Amount Invested) ^ (1/n)) - 1
Annualized Return is especially useful when you compare investments with different durations and want a more strategic, time-adjusted analysis of performance.

Does this ROI calculator include taxes, fees, or other costs automatically?

No. This user-friendly tool assumes that any extra costs—such as taxes, transaction fees, or other charges—are already reflected in the numbers you input. For a more accurate and reliable ROI:

  1. Subtract all relevant costs from your final revenue.
  2. Use that adjusted figure as your Amount Returned.

This way, the formula outputs a result that better represents the real financial performance of your investment.

Can I use this calculator as a simple ROI dashboard to compare multiple investments?

Yes. You can calculate ROI and annualized return for each investment separately using the same formulas, then compare the percentages like a mini financial dashboard. By tracking these outputs over time, you can:

  • Evaluate which investments generate better profit or savings
  • Analyze performance trends
  • Optimize your future financial decisions with clearer, data-driven insight.