How to use the ROI Calculator
- Enter the amount invested.
- Enter the final value or total returned.
- Optionally enter how many years it took, to see the annualized return.
What does this tool do?
ROI compares what you got back with what you put in. It's useful for comparing investments, marketing campaigns, equipment purchases or any spending meant to make money.
Plain ROI ignores time, which can mislead: 50% over one year is much better than 50% over ten. That's why the calculator also shows the annualized return.
Why use it?
- Compare options of different sizes and lengths.
- Annualized figure for fair comparisons.
- Clear formula you can share.
Example
You invest $5,000 and get back $6,800 after 3 years. ROI = 1,800 ÷ 5,000 = 36%. Annualized, that's about 10.8% a year.
The formula
ROI = (Final value − Invested) ÷ Invested × 100
Annualized = (Final ÷ Invested)^(1 ÷ years) − 1
Privacy
The calculation happens instantly in your browser. The numbers you enter are not sent to our servers or saved. There's no account to create and nothing to install.
Last reviewed by the M2Toolkit team.