ROI Calculator
Calculate return on investment with annualized returns.
Total ROI
+50.0%
Annualized
+14.5%
Profit/Loss
$5,000
Multiple
1.50x
ROI Calculator — What It Does
Enter your initial investment, final value, and holding period to instantly see your total ROI percentage, net profit or loss, annualized return (CAGR), and investment multiple (MOIC). Useful for evaluating stocks, real estate, business projects, marketing campaigns, or any investment where you want to compare performance against a benchmark.
ROI Formulas Reference
ROI Examples
Tips for Accurate ROI Analysis
Frequently Asked Questions
- What is the ROI formula?
- ROI = ((Final Value − Initial Investment) / Initial Investment) × 100. For example, if you invest $1,000 and it grows to $1,500, your ROI is ((1500 − 1000) / 1000) × 100 = 50%.
- What is the difference between ROI and annualized ROI?
- Simple ROI measures total percentage gain regardless of time. Annualized ROI (CAGR) shows the equivalent yearly return: CAGR = (Final / Initial)^(1/years) − 1. A 50% total ROI over 5 years is only a 8.45% annualized return — very different from 50% per year.
- What is considered a good ROI?
- It depends on the asset class and time horizon. For stock market investments, an annualized ROI of 7–10% is historically average. For real estate, 8–12% is common. Business investments often target 15–25%+. Short-term trades or marketing campaigns use different benchmarks.
- What is an investment multiple (MOIC)?
- MOIC (Multiple on Invested Capital) is simply Final Value / Initial Investment. An investment that doubles your money is a 2× MOIC. It is commonly used in private equity and venture capital where time horizons vary widely.
- How do I account for recurring costs when calculating ROI?
- Add all ongoing costs (fees, maintenance, taxes) to your initial investment figure, or subtract them from your final value. ROI only tells you the net return — all costs must be included for an accurate picture. This is why "total cost of ownership" matters in business ROI analysis.