Measure the profitability of your investments quickly and accurately.
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**ROI (Return on Investment)** is a performance measure used to evaluate the efficiency of an investment. It calculates the return relative to the cost.
Formula: ROI = [(Current Value - Cost) / Cost] x 100
A positive ROI means you made a profit, while a negative ROI means you lost money on the investment.
In finance, the most important question is often: "Is it worth it?" Whether you're an entrepreneur evaluating a startup investment, a marketer analyzing an ad campaign, or an investor comparing assets, an ROI Calculator gives you a fast, clear answer. Return on Investment (ROI) is a widely used metric for evaluating the efficiency and profitability of an investment.
Our ROI Calculator takes your amount invested and amount returned, and instantly calculates your ROI percentage, dollar gain or loss, and investment ratio. It's completely free, works instantly, and requires no sign-up.
ROI doesn't just look at how much money you made; it looks at how much you made relative to what you spent. A $1,000 profit on a $5,000 investment is a much better result than a $1,000 profit on a $50,000 investment.
Should you put your money into real estate or the stock market? Calculating the ROI of both lets you compare which option historically provides better returns relative to cost.
This calculator provides a simple ROI figure — it does not currently account for the time period over which the investment was held. A 50% ROI over 1 year is a very different result from a 50% ROI over 20 years, even though the percentage is the same. If you want to compare investments held over different time periods, you'd need to separately calculate an "annualized" figure using your own holding period.
ROI = [(Amount Returned − Amount Invested) ÷ Amount Invested] × 100
Net Gain/Loss = Amount Returned − Amount Invested
| Invested | Returned | Gain/Loss | ROI | Ratio |
|---|---|---|---|---|
| $1,000 | $1,500 | +$500 | 50.00% | 1.5x |
| $5,000 | $4,000 | −$1,000 | −20.00% | 0.8x |
| $2,000 | $6,000 | +$4,000 | 200.00% | 3.0x |
Values calculated directly using this calculator's formula.
| Asset Class | Commonly Cited Long-Term Average | Risk Level |
|---|---|---|
| Stock Market (S&P 500) | ~7–10% annually | Medium-High |
| Real Estate (Rental) | ~6–10% annually | Medium |
| Gold | ~3–5% annually | Low |
| Savings Account | ~1–5% annually | Very Low |
These are broad, commonly cited historical averages and can vary significantly by time period and market conditions.
Transaction fees, taxes, and maintenance costs should be included in your "invested" figure for an honest ROI calculation.
A 30% ROI over 1 year is far better than a 30% ROI over 10 years. Always note the holding period when comparing ROI figures between investments.
A high ROI on a risky investment isn't automatically "better" than a lower ROI on a safe one — factor in how much risk you took to achieve that return.
ROI gives you a quick, standardized way to judge whether an investment paid off relative to its cost. Use the calculator above to test different scenarios, and remember to factor in the holding period and risk level when comparing results across different investments.