How is ROI calculated?
ROI = (Amount Returned - Amount Invested) / Amount Invested, expressed as a percentage.
Finance
ROI Calculator
Enter what you invested and what you received back to see your ROI as a percentage and net profit.
Live calculator output
Enter the invested and returned amounts to see your ROI.
How it works
ROI measures the efficiency of an investment. The formula is: ROI = (Amount Returned − Amount Invested) ÷ Amount Invested × 100%.
A positive ROI means profit; a negative ROI means loss. This is the simplest and most widely used metric for comparing investment performance. Note that this is a total return figure — it does not account for how long the investment was held.
Practical example
You invest 10,000 in a rental property and sell it for 13,000. Net profit = 3,000. ROI = 3,000 ÷ 10,000 × 100% = 30%.
If the investment took 3 years, the annualized ROI is roughly 9.1% per year, which gives a better comparison against other investments held for different durations.
Frequently asked questions
Does this account for time?
No. This is a simple ROI calculation. For time-adjusted returns, use an annualized return formula.
Can ROI be negative?
Yes. A negative ROI means the investment lost money.
How do I annualize ROI?
Use the formula: Annualized ROI = ((1 + ROI)^(1/years) − 1) × 100%. This lets you compare investments held for different durations.
Is ROI the best metric for investments?
ROI is simple and widely understood, but for more nuanced analysis consider metrics like IRR (Internal Rate of Return) or risk-adjusted returns.
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