How is ROI calculated?

ROI = (Net Profit / Cost of Investment) × 100. Net profit is revenue minus costs, or final value minus initial value.

What's the difference between ROI and CAGR?

ROI measures total return over the entire period. CAGR (annualized ROI) smooths it into a per-year rate, which is more useful for comparing investments of different durations.

Yes. A negative ROI means the investment lost money. The calculator handles this correctly.

Is this the same as profit margin?

No. Profit margin is profit divided by revenue. ROI is profit divided by the cost/investment.

ROI CALCULATOR

Calculate Return on Investment from cost and profit, or from initial and final values. Add a duration to get the annualized rate. Runs entirely in your browser.

Investment Details

Initial Investment ($)

Net Profit ($)

Can be negative for a loss

Duration (years) — optional

Leave blank to skip annualized ROI

ROI+35.00%

Net Profit+$3,500.00

Annualized ROI+10.52%per year

For every $1 invested, you got back $1.35. That works out to +10.52% per year over 3 years.

How to calculate ROI

1
Choose a mode: enter net profit directly, or enter initial and final values.
2
Enter your initial investment cost.
3
Optionally enter the duration in years to see the annualized ROI.
4
Read the ROI percentage, net profit, and annualized return.

Questions

How is ROI calculated?: ROI = (Net Profit / Cost of Investment) × 100. Net profit is revenue minus costs, or final value minus initial value.
What's the difference between ROI and CAGR?: ROI measures total return over the entire period. CAGR (annualized ROI) smooths it into a per-year rate, which is more useful for comparing investments of different durations.
Can ROI be negative?: Yes. A negative ROI means the investment lost money. The calculator handles this correctly.
Is this the same as profit margin?: No. Profit margin is profit divided by revenue. ROI is profit divided by the cost/investment.