ROI Calculator
ROI (Return on Investment) is the most widely used metric to evaluate the profitability of an investment. Enter the amount you invested and the final value to instantly calculate ROI percentage, net profit or loss, and investment multiplier. Optionally enter the time period to see the annualized (CAGR) return.
Frequently Asked Questions
What is ROI?
ROI (Return on Investment) is a percentage that shows how much profit or loss an investment generated relative to its cost. Formula: ROI = (Final Value − Initial Investment) / Initial Investment × 100%.
What is annualized ROI (CAGR)?
Annualized ROI, also known as CAGR (Compound Annual Growth Rate), shows the equivalent annual return if the investment grew at a steady rate. It's useful for comparing investments held over different time periods. Formula: CAGR = (Final/Initial)^(1/years) − 1.
What is the investment multiplier?
The multiplier shows how many times your money grew. For example, a multiplier of 2.5× means your investment grew 2.5 times. It equals Final Value / Initial Investment.
Can ROI be negative?
Yes. A negative ROI means you lost money on the investment. For example, if you invested $10,000 and got back $7,000, the ROI is −30%.
What's a good ROI?
It depends on the asset class. Stock markets historically return 7–10% per year. Real estate typically returns 4–8% annually. A savings deposit might return 2–5%. Anything above the average for its category is considered a good ROI.