ROI Calculator
Calculate return on investment (ROI) and annualized ROI for any investment.
| Scenario | Profile | Return on Investment (ROI) |
|---|---|---|
Base Settings | Default inputs and growth assumptions | 50.00% |
Conservative | Lower yield, higher inflation, haircuts | 35.00% |
Optimistic | Favorable yield, lower inflation, growth | 65.00% |
Stress Test | Severe economic crash and high inflation | 5.00% |
Educational estimate. Not financial advice.
Very high historical return of 50.00% reflects outstanding investment compounding per Investment Return Benchmarks.
Investing $50,000 and returning $75,000 over 2 years generates a nominal ROI of 50.00%. Capital gains tax drag costs $3,750.
How to Use the ROI Calculator
Measure the profitability of your investments using our free ROI calculator. Whether you are analyzing stock performance, real estate investments, or business capital expenses, calculating the Return on Investment (ROI) is crucial. Input your initial investment and total returns to instantly compute your net profit, total ROI, and annualized return.
- Scenario Mode: Bounded parameter in the mathematical model.
- Goal to Calculate: Bounded parameter in the mathematical model.
- Amount Invested ($): Bounded parameter in the mathematical model.
- Amount Returned ($): Bounded parameter in the mathematical model.
- Target ROI Goal (%): Bounded parameter in the mathematical model.
- Investment Duration: Bounded parameter in the mathematical model.
- Duration Unit: Bounded parameter in the mathematical model.
- Adjust for Inflation: Bounded parameter in the mathematical model.
- Annual Inflation Rate (%): Bounded parameter in the mathematical model.
- Tax on Capital Gains (%): Bounded parameter in the mathematical model.
CAGR vs XIRR: Calculating Investment Returns & Irregular Cash Flows
Compare Compound Annual Growth Rate vs Extended Internal Rate of Return for steady vs irregular transaction scenarios.
Read Full Guide →What is the formula for calculating ROI?
The formula for Return on Investment (ROI) is: ROI = ((Current Value - Initial Cost) / Initial Cost) * 100. This calculates the percentage gain or loss relative to the investment's original cost.
What is the difference between absolute ROI and annualized ROI?
Absolute ROI shows the total percentage growth of an investment over its entire duration, ignoring time. Annualized ROI calculates the geometric average return per year, allowing investors to compare the performance of assets held for different lengths of time.
What is a good return on investment (ROI)?
A good ROI depends on the asset class and your risk tolerance. Historically, the stock market averages about 7% to 10% annualized ROI after inflation. Real estate returns often range from 6% to 12%, while business ventures target higher margins to offset higher risks.
Evaluate index funds, stocks, and mutual funds. Solve for future value, total return (ROI), or CAGR while accounting for periodic contributions, annual fee ratios, tax drags, and dividend reinvestment.
Compound Interest CalculatorCalculate how your money grows over time with the compounding interest formula.
CAGR CalculatorCalculate compound annual growth rate (CAGR) of an investment over time.
Break-Even CalculatorFind the unit volume needed to cover fixed overhead costs, solve for required pricing, or solve allowed overhead budgets.
XIRR CalculatorCalculate Extended Internal Rate of Return (XIRR) for irregular transaction cash flows Ledger.