Free ROI Calculator
Calculate return on investment, annualized ROI, and net profit from any investment. 100% in your browser.
How It Works
Enter your initial investment amount, net profit or gain from the investment, and the time period. The calculator computes simple ROI percentage, annualized ROI, and payback period. Compare multiple investment scenarios side by side to make data-driven decisions. All calculations are instant and happen entirely in your browser.
When to Use It
- Evaluating marketing campaigns by comparing ad spend to revenue generated to determine which channels deliver best ROI.
- Presenting business case justifications to stakeholders with clear ROI projections for proposed investments.
- Comparing equipment purchases, software subscriptions, or hiring decisions based on expected return over time.
Frequently Asked Questions
How is ROI calculated?
ROI = ((Net Profit - Investment) / Investment) x 100. For example, if you invest 10,000 and get back 15,000, your ROI is ((15,000 - 10,000) / 10,000) x 100 = 50%. Annualized ROI adjusts this for the time period to allow comparison between investments of different durations.
What is annualized ROI?
Annualized ROI normalizes returns to a per-year basis, making it possible to compare investments with different time horizons. A 50% ROI over 5 years is less impressive than 50% over 1 year. The formula uses compound growth to calculate the equivalent annual return rate.
Does ROI account for risk?
No. ROI is a pure return metric that does not factor in risk, volatility, or probability of success. Two investments with the same ROI may have very different risk profiles. For risk-adjusted analysis, combine ROI with other metrics like Sharpe ratio or use Monte Carlo simulations.
All calculations happen in your browser. No data is sent to any server.
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