ROI Calculator
Calculate Return on Investment (ROI) for your investments, marketing campaigns, or business projects
Total amount invested upfront
Total value at the end or total returns received
Investment duration for annualized ROI
About This Calculator
The ROI Calculator helps investors, marketers, and business owners measure the profitability of their investments. Return on Investment (ROI) is one of the most widely used financial metrics for evaluating investment performance. Whether you're analyzing stock market returns, measuring marketing campaign effectiveness, or evaluating a business project, ROI gives you a clear percentage that shows how much profit you made relative to your investment. This calculator provides both total ROI and annualized ROI (CAGR), allowing you to compare investments across different time periods accurately. It's an essential tool for making informed financial decisions.
How to Use
- 1Enter your initial investment amount
- 2Input the final value or total returns received
- 3Optionally specify the time period in years for annualized ROI
- 4View your total ROI, annualized ROI, and investment multiple
- 5Use these metrics to compare different investment opportunities
Formula
ROI = ((Final Value - Initial Investment) / Initial Investment) × 100ROI measures the efficiency of an investment by comparing the gain or loss relative to the cost. Annualized ROI (CAGR) shows the average yearly growth rate.
FAQ
A "good" ROI depends on the investment type and risk. Stock market averages 7-10% annually. Real estate typically 8-12%. Marketing campaigns often target 5:1 (400% ROI). Higher risk investments should yield higher ROI to be worthwhile.
ROI shows total return regardless of time. CAGR (Compound Annual Growth Rate) or annualized ROI shows the average yearly growth rate, making it easier to compare investments of different durations.
Yes, negative ROI indicates a loss on investment. For example, investing $10,000 and getting back $8,000 results in -20% ROI, meaning you lost 20% of your investment.
For marketing ROI: (Revenue from Campaign - Campaign Cost) / Campaign Cost × 100. If you spent $1,000 on ads and generated $5,000 in sales, your ROI is 400%.
ROI doesn't account for time value of money, risk levels, or opportunity costs. Two investments with the same ROI may have very different risk profiles. Always consider ROI alongside other metrics.