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ROI Calculator

Calculate return on investment, net gain or loss, and return ratio.

Total value received back, including your original investment.
Return on Investment 0%
Net Gain / Loss

$0

Return Ratio

0.00x

How to use ROI?

ROI (Return on Investment) is a performance measure used to evaluate the efficiency of an investment. It compares the net gain or loss to the amount invested.

Formula: ROI = [(Amount Returned − Amount Invested) ÷ Amount Invested] × 100

A positive ROI means the investment returned more than it cost, while a negative ROI means it returned less than it cost.

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Complete ROI Calculator Guide

In finance, a common question is: "Was it worth it?" Whether you're an entrepreneur evaluating a business investment, a marketer analyzing a campaign, or an investor comparing assets, an ROI Calculator gives you a quick, standard measure. Return on Investment (ROI) is a widely used metric for evaluating the efficiency of an investment.

Our ROI Calculator takes your amount invested and amount returned, and calculates your ROI percentage, net gain or loss in dollars, and return ratio. It's free, works instantly, and requires no sign-up.

Financial Definition: ROI is expressed as a percentage. A positive ROI means the amount returned was higher than the amount invested, while a negative ROI means it was lower.

How ROI Works

1. Measuring Efficiency

ROI doesn't just look at how much money you made; it looks at how much you made relative to what you spent. A $1,000 profit on a $5,000 investment is a higher ROI than a $1,000 profit on a $50,000 investment.

2. Comparing Opportunities

Calculating the ROI of different options puts their results on the same percentage basis, which makes them easier to compare. For a fair comparison, use the same holding period and consider the risk involved in each.

3. Simple ROI, Not Annualized ROI

This calculator provides a simple ROI figure. It does not ask for the time period over which the investment was held. A 50% ROI over 1 year is a very different result from a 50% ROI over 20 years, even though the percentage is the same. Annualized ROI is a separate calculation that accounts for the holding period, and it is not what this tool shows.

The ROI Formula

ROI = [(Amount Returned − Amount Invested) ÷ Amount Invested] × 100

Net Gain/Loss = Amount Returned − Amount Invested  |  Return Ratio = Amount Returned ÷ Amount Invested

How to Use This Calculator:

  1. Amount Invested: Enter the total cost of the investment, including fees and taxes where applicable. It must be greater than zero.
  2. Amount Returned: Enter the total value you received back, including your original investment (or the total revenue generated). Zero is allowed and means a total loss.
  3. Calculate: Click the button to see your ROI percentage, net gain or loss, and return ratio.
Tip: Include costs such as maintenance, transaction fees and commissions in your Amount Invested. Leaving them out makes an ROI look better on paper than it really is.

Worked Examples

InvestedReturnedGain/LossROIReturn Ratio
$1,000$1,500+$500 (gain)50.00%1.50x
$5,000$4,000−$1,000 (loss)−20.00%0.80x
$2,000$6,000+$4,000 (gain)200.00%3.00x
$1,000$0−$1,000 (loss)−100.00%0.00x

Calculated with this calculator's formula. Time period is not included, so these are simple ROI figures.

The Inflation Factor: A nominal return can still lose purchasing power if inflation is higher. As a rough estimate, subtracting the inflation rate from your return shows your "real" return, though this calculator does not do it for you.

Common Mistakes When Calculating ROI

1. Forgetting Hidden Costs

Transaction fees, taxes, and maintenance costs should be included in your "invested" figure for an honest ROI calculation.

2. Comparing ROI Across Different Time Periods

A 30% ROI over 1 year is a stronger result than a 30% ROI over 10 years. Always note the holding period when comparing ROI figures between investments.

3. Ignoring Risk Level

A high ROI on a risky investment isn't automatically "better" than a lower ROI on a safer one. Consider how much risk was taken to achieve the return.

Financial Disclaimer: Past performance is not indicative of future results. ROI calculations are based on the values you enter and are for illustration only. Do your own research, and consult a financial advisor before committing capital.

Conclusion

ROI gives you a quick, standard way to see how an investment's return compares with its cost. Use the calculator above to test different scenarios, and remember to factor in the holding period and risk when comparing results across investments.

Returns & Gains: Frequently Asked Questions

What is a good ROI?
There is no single number. A "good" ROI depends on the risk taken, the time period, and what alternatives were available. A common approach is to compare an investment's return with the cost of the money used or with other options you could have chosen, over the same period.
Can ROI be more than 100%?
Yes. If you double your money, your ROI is 100%. If you triple it, your ROI is 200%. There is no upper limit. On the downside, ROI cannot go below −100%, which is a total loss of the amount invested.
Does this calculator show Annualized ROI?
No. This calculator shows simple ROI only, based on your invested and returned amounts. It doesn't ask for or use a time period. Annualized ROI is a related but separate calculation that accounts for how long the investment was held.
What is the "Return Ratio" shown in the results?
It is your amount returned divided by your amount invested, shown as a multiple. For example, 1.50x means you got back 1.5 times what you put in, and 0.80x means you got back 80% of it.
What happens if the amount invested is zero?
ROI is a percentage of the amount invested, so it cannot be calculated when that amount is zero. The calculator asks you to enter an amount greater than zero.
What are the limitations of ROI?
Simple ROI does not account for risk or time, and it doesn't reflect the "opportunity cost" of what else you could have done with that money.