Free Online ROI Calculator

1. Enter the initial cost or amount invested.
2. Enter the final value at the end of the holding period.
3. Optionally enter the years held to get an annualized ROI.
4. Read the net profit, total ROI, and annualized ROI in the result panel.

Return on Investment is the simplest measure of how profitable something was — net profit divided by what you put in. It applies to stock trades, marketing campaigns, real estate, capital projects, and even education spend.

The core formula ROI = (gain − cost) ÷ cost × 100 is silent on time, which is its main limitation. A 50% return is great in one year, mediocre over five, and poor over twenty. To compare investments of different durations, annualise with ((final ÷ initial)^(1 ÷ years)) − 1 — the constant yearly rate that would have produced the same final value if compounded annually. This is the same calculation as CAGR.

This tool reports both the simple total ROI and (when you supply the holding period in years) the annualized version. Useful for ranking historical returns or projecting forward against a benchmark like the S&P 500's long-term ~10% annualized. General information only — verify any investment decision with a qualified advisor.