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Free ROI calculator

Calculate your Return on Investment in seconds

Get your ROI percentage, net profit, and annualized return instantly. Works for any currency, any timeframe. No signup, no limits.

Your investment

Enter your numbers — results update as you type.

$
$
Return on Investment
25.00%
Net Profit
$2,500.00
Annualized ROI
25.00%
Investment Multiple
1.25×
Period
1 year
A $10,000.00 investment that grew to $12,500.00 over 1 year delivered a 25.00% return. Annualized: 25.00%.
The math

How ROI is calculated

Two formulas. The first works for any investment. The second adjusts for time so you can compare investments of different durations.

Simple ROI

ROI = (Final Value Initial Investment) / Initial Investment × 100

Use this when you just want the total return regardless of how long the investment was held.

Example: $10,000 → $12,500 = (2,500 / 10,000) × 100 = 25% ROI.

Annualized ROI

Annualized ROI = [(Final / Initial)1/years 1] × 100

This converts total return into a per-year rate, so a 25% return earned in 1 year and a 25% return earned in 5 years stop looking the same.

Example: 25% over 3 years annualizes to roughly 7.72% per year.

FAQ

Frequently asked questions

How do you calculate ROI?

ROI = (Net Profit / Initial Investment) × 100, where Net Profit is the final value minus the initial investment. A $10,000 investment returning $12,500 has a $2,500 net profit and a 25% ROI.

What is a good ROI?

Context matters. Stock market historical averages run 7–10% annually. Marketing campaigns often target 200–500%. Real estate varies widely. A “good” ROI beats the alternative use of the same capital, adjusted for risk and time.

What's the difference between ROI and annualized ROI?

Simple ROI shows total return regardless of how long it took. Annualized ROI converts that into a per-year rate so you can compare investments of different durations fairly. A 25% ROI over 1 year is far better than 25% over 5 years.

Can ROI be negative?

Yes. If your final value is less than what you invested, ROI is negative, meaning you lost money. A -10% ROI means you got back 90% of your investment.

Does this calculator handle multi-year investments?

Yes. Enter an investment period and the calculator also returns annualized ROI, the standard way to compare investments held over different time spans.

Is the ROI calculator free?

Yes. No signup, no usage limits, no premium tier. Free forever as part of brandID's free tools.

Does ROI account for inflation or taxes?

No. Standard ROI is a gross calculation. For real returns, subtract taxes from net profit and adjust against the inflation rate over the same period.

From brandID

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