ROI Calculator

Measure the return on an investment, including the annualized ROI.

Updated November 8, 2026. Runs in your browser; nothing you type is stored.

What ROI tells you

Return on investment (ROI) answers a simple question: for every dollar you put in, how much did you get back? It works for almost anything — a course, new equipment, an ad campaign, inventory or a stock. Because it is a percentage, it lets you compare investments of very different sizes.

Plain ROI ignores time, though. Doubling your money in one year is much better than doubling it in ten. That is why this calculator also shows annualized ROI, the steady yearly growth rate that would produce the same result.

The formula

Net profit = amount returned − amount invested
ROI % = net profit ÷ amount invested × 100
Annualized ROI = (amount returned ÷ amount invested)^{1 ÷ years} − 1

Worked example

You spend $1,000 on equipment that brings in $1,500 over two years. Net profit is $500 and ROI is $500 ÷ $1,000 = 50%. Spread over two years, the annualized ROI is 1.5^0.5 − 1 ≈ 22.5% a year.

Using ROI well

• Count all costs, including fees, maintenance and your own time if it matters to you.
• Compare annualized figures when investments last different lengths of time.
• Remember risk. Two investments with the same ROI are not equal if one was far more likely to fail.

Frequently asked questions