Quick examples
Net Profit
$50,000
ROI
50.00%
Annualized ROI
50.00%
ROI Calculator — Quick Reference
The ROI Calculator is an online tool that calculate Return on Investment as a percentage of gain or loss. Everything for the ROI Calculator is on this page: the interactive calculator, the formula, a worked example, step-by-step guidance, and frequently asked questions — no other pages required.
At a glance
- Main inputs
- Starting value
- Ending value or cash flows
- Holding period
- Main outputs
- Absolute return
- Annualized return (CAGR/XIRR/ROI)
Direct answers
What is the ROI Calculator?
The ROI Calculator is an online tool that calculate Return on Investment as a percentage of gain or loss.
What formula does the ROI Calculator use?
A basic ROI calculator uses ROI = Profit / Cost x 100. It is simple and useful, but it does not tell you how long the profit took to earn.
How does the ROI Calculator work?
ROI = (Net Profit / Cost of Investment) × 100. Enter investment cost and returns to get ROI percentage.
Formula Used
The equation below is what this calculator applies. Variable definitions follow when symbols are used.
Equation
ROI % = (Gain − Cost) / Cost × 100
Worked Example: $200,000 cost, $320,000 revenue in 2 years
Sample inputs and the results this calculator produces for the scenario below.
Inputs
- Cost
- $200,000
- Revenue
- $320,000
- Period
- 2 years
Results
- Net Profit
- $120,000
- ROI
- 60.0%
ROI is useful for comparing projects with different sizes and durations. Pair it with payback period for business decisions.
How ROI Calculator Works
ROI = (Net Profit / Cost of Investment) × 100. Enter investment cost and returns to get ROI percentage.
What to enter
Use the calculator above to set your amounts, rates, and tenure. Results update as you move sliders or type values — switch currency if you are planning in USD, INR, or another supported unit.
Step-by-step
- Open the ROI Calculator and enter your amounts, rates, and time period in the input fields.
- Review the results panel — totals update instantly when you change any value.
- Compare the worked example and formula below to verify the math matches your scenario.
- Read the FAQs for common edge cases, tax notes, and planning tips specific to this calculator.
ROI — Frequently Asked Questions
Each question is answered directly below. Expand any item for the full response.
How is ROI calculated?
A basic ROI calculator uses ROI = Profit / Cost x 100. It is simple and useful, but it does not tell you how long the profit took to earn.
Why can ROI be misleading for comparisons?
A 20% ROI in six months is very different from 20% over five years, yet the simple formula treats them the same. For better comparisons across time, use CAGR or annualized return.
Should I include all costs in ROI?
Yes, otherwise ROI gets overstated. Include transaction charges, taxes, financing costs, maintenance, or any other expenses required to earn the return.
When is ROI still useful?
ROI is useful for quick business or investment screening when you want a first-pass profitability check. It works best as a summary metric, not as the only decision tool.
Disclaimer
- This calculator gives you an estimate only. It is not a promise of exact results.
- This is general information, not personal financial, tax, or legal advice.
- You are responsible for your own decisions. Talk to a qualified professional when it matters.
- Past performance does not mean future results. Real returns can vary.