ROI Calculator
Calculate return on investment using your initial cost, final value, additional costs and time period.
Overview
This ROI Calculator helps you estimate how much profit an investment produced and what that return looks like as a percentage. Enter your initial investment, any additional costs, the final value, and the time period to see total ROI, annualized ROI, and net profit.
How it works
The calculator first adds your initial investment and additional costs to find your total cost. It then subtracts total cost from the final value to calculate net profit. ROI is calculated as net profit divided by total cost, expressed as a percentage. Annualized ROI converts the overall growth into an average yearly compounded return based on the time period entered.
How to use this calculator
- 1Enter your initial investment amount.
- 2Add any extra costs such as fees or maintenance.
- 3Enter the final or current value of the investment.
- 4Input the number of years the investment was held.
- 5Review your net profit, ROI, and annualized ROI results.
Example Calculation
Initial investment
$10,000
Final value
$13,500
Additional costs
$500
Time period
2
Net profit
$3,000
If you invested 10000, paid 500 in additional costs, and ended with 13500 after 2 years, your net profit would be 3000, your ROI would be about 28.57%, and your annualized ROI would be about 13.39% per year.
Frequently asked questions
What does this ROI Calculator estimate?
It estimates your net profit, total return on investment percentage, and annualized ROI based on the values you enter.
How is ROI calculated?
ROI is calculated by subtracting total cost from final value, then dividing the result by total cost and multiplying by 100.
What are additional costs?
Additional costs can include fees, commissions, maintenance, upgrades, or other expenses directly related to the investment.
What is annualized ROI?
Annualized ROI shows the average yearly compounded return over the time period entered, which can help compare investments held for different lengths of time.
Can ROI be negative?
Yes. If your final value is less than your total cost, the calculator will show a negative profit and negative ROI.
Does this calculator include taxes or inflation?
No. These are not included unless you manually reflect them in your costs or final value.
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Assumptions and warnings
Assumptions
- ROI is calculated using final value minus total cost, divided by total cost.
- Additional costs are treated as part of the total investment amount.
- Annualized ROI assumes the investment grew at a steady compounded rate over the period entered.
- Results are estimates and do not include taxes unless you include them in your costs.
Warnings
- This calculator provides an estimate only and is not financial advice.
- Investment returns are not guaranteed, and actual results may vary.