How is ROI calculated?

ROI is the profit divided by the initial investment, multiplied by 100. Profit is the final value minus the initial investment.

What does a negative ROI mean?

It means the final value is lower than the amount invested, so the investment made a loss.

Does ROI account for time?

No. Basic ROI does not consider how long the investment was held. For time-based comparisons, look at annualised return instead.

Finance Calculators

ROI Calculator

Calculate return on investment and the profit or loss from an investment.

Free browser toolRuns in your browserNo sign-up

Initial investmentCurrencyFinal value

Return on investment

35%

ROI

$3,500.00

Profit

ROI is ((final value - initial investment) / initial investment) x 100. A negative result means the final value is lower than the amount invested, which is a loss.

ROI formula explained

Return on investment compares the profit or loss with the original amount invested. It does not account for how long the investment was held.

ROI = (Final value - Initial cost) / Initial cost x 100

Profit: Final value minus initial cost
ROI: Profit as a percentage of initial cost

Worked example

An investment bought for $1,000 and sold for $1,200 makes $200 profit and has a 20% ROI.

Practical tips

Include every cost
Fees, taxes and maintenance costs reduce the real return.
Compare equal periods
A 20% return over one year is not equivalent to 20% over five years.

About the ROI Calculator

The ROI Calculator measures how much an investment gained or lost relative to its cost, expressed as a percentage.

It uses ROI = ((final value - initial investment) / initial investment) x 100 and also shows the absolute profit or loss.

A positive ROI means the investment grew, while a negative ROI means it lost value. All calculations run entirely in your browser.

Key features

ROI percentage
Profit or loss amount
Handles gains and losses
Locale-aware currency formatting

How to use

1Enter the initial investment or cost and choose a currency.
2Enter the final value or return.
3Read the ROI percentage and the profit or loss.

Examples

Return on investment

Input: Invested 1000, returned 1200

Output: ROI 20%

The 200 gain is divided by the 1000 invested to get 20%.

Frequently asked questions

How is ROI calculated?: ROI is the profit divided by the initial investment, multiplied by 100. Profit is the final value minus the initial investment.
What does a negative ROI mean?: It means the final value is lower than the amount invested, so the investment made a loss.
Does ROI account for time?: No. Basic ROI does not consider how long the investment was held. For time-based comparisons, look at annualised return instead.

Open a related tool to prepare your files or refine the finished result.