ConvertThemAll

ROI calculator

How much did an investment return, in total and per year?

Formula Finance

Return on investment

Return on investment: 30%

Gain or loss
US$1,500.00

How it works

ROI is the gain divided by what you invested. It is simple and works for any project or purchase, but it ignores how long the money was tied up.

Enter the holding period to also see the annualised return, the yearly compound rate that gives the same result. Include all costs, such as fees, in the amount invested and subtract them from the amount returned for a fair figure.

Formula

ROI = (returned − invested) ÷ invested × 100
Annualised = (returned ÷ invested)^(1 ÷ years) − 1

Worked example

Investing 5,000 and getting back 6,500 is a gain of 1,500 and an ROI of 30%. Over 3 years that is an annualised return of about 9.14%.

Questions people ask

Is a higher ROI always better?

Not on its own: 30% over 1 year is far better than 30% over 10 years. Compare annualised returns and the risks involved.

Can ROI be negative?

Yes. If you got back less than you put in, the ROI is negative; −100% means everything was lost.