What is the ROI formula?

ROI = ((Final Value − Initial Investment) / Initial Investment) × 100. For a $10,000 investment that returns $13,000: (($13,000 − $10,000) / $10,000) × 100 = 30% ROI.

What is annualized ROI and why does it matter?

Annualized ROI converts returns to a per-year rate for fair comparison between investments of different durations. A 30% ROI over 3 years is approximately 9.1% per year, not 10% (because of compounding). Use CAGR formula: (Final/Initial)^(1/years) − 1.

The stock market historically returns about 7–10% annualized ROI (inflation-adjusted). A good ROI depends on the risk profile — a 5% risk-free savings account ROI may be better than a 10% ROI in a very risky investment.

Home ToolsROI Calculator

ROI Calculator

Name: ROI Calculator
Rating: 4.8 (120 reviews)
Author: DailyDevTools

Calculate Return on Investment

Investment ($)

Final Value ($)

Time (Years)

Total Gain

$0.00

ROI

0.00%

Annualized ROI

0.00%

Use these tools directly in Chrome

Install the DailyDevTools extension — access all tools from your browser toolbar

Add to Chrome

What is ROI Calculator?

Return on Investment (ROI) is a key performance metric that measures the profitability of an investment relative to its cost. DailyDevTools' ROI Calculator computes simple ROI, annualized ROI, and net profit from initial investment and final value — used for evaluating business decisions, marketing spend effectiveness, real estate investments, and comparing multiple investment options.

How to use ROI Calculator

1Enter the initial investment amount and the final return amount
2For annualized ROI, enter the investment duration in months or years
3View the net profit, simple ROI percentage, and annualized ROI
4Use the Comparison mode to evaluate multiple investments side by side

Frequently asked questions

Comments

Explore other popular developer tools

Unit Converter

Convert Length, Weight & Temp

BMI Calculator

Calculate Body Mass Index (BMI)

Age Calculator

Calculate precise age and total days

Loan Calculator

Calculate monthly EMI and total interest

ROI Calculator

What is ROI Calculator?

How to use ROI Calculator

Frequently asked questions

Comments

You might also like