ROI (Return on Investment) is a metric that measures profit or loss relative to an investment cost. It is commonly expressed as a percentage to compare investment performance.

How do you calculate ROI?

ROI is calculated as (Net Profit ÷ Investment Cost) × 100. Net profit is the total return minus the investment cost.

What does a negative ROI mean?

A negative ROI means the investment returned less than it cost, resulting in a loss relative to the initial investment.

Is this ROI calculator free to use?

Yes. This ROI calculator is free to use and provides instant estimates based on the values you enter.

Free ROI Calculator.

Q: What is annualised ROI?

Annualised ROI estimates an average yearly rate of return over a period of time. It can help compare investments with different timeframes, but it may not reflect uneven cashflows.

Q: What is the payback period?

The payback period estimates how long it takes to recover the initial investment based on returns. Shorter payback periods generally indicate faster recovery of costs.

Use this ROI calculator to calculate your return on investment (ROI), net profit, and return multiple. You can also include a duration to estimate annualised ROI and an estimated payback period.

This calculator is suitable for business investments, marketing campaigns, property, projects, and general financial decision-making.

Use Our ROI Calculator Below

Use this ROI calculator to calculate return on investment, net profit, and (optionally) annualised ROI. Enter your investment cost and return, then view results instantly.

ROI Calculator

Currency

Investment cost

Total return (revenue/value)

Net profit (optional)

Mode: Simple ROI Include duration

ROI

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Net profit

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Return multiple

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Annualised ROI

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Estimated payback

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Based on an even return over time.

What Is ROI?

ROI (Return on Investment) measures how much you make or lose compared to what you put in. It tells you if an investment is profitable for its cost.

ROI is typically expressed as a percentage and is widely used to compare different investments or assess performance.

How ROI Is Calculated

ROI is calculated using the following formula:

ROI (%) = (Net Profit ÷ Investment Cost) × 100

Where:

Investment cost is the total amount you invested
Net profit is the return minus the investment cost

This ROI calculator performs the calculation instantly based on the values you enter.

How to Use the ROI Calculator

To calculate ROI:

Select your currency
Enter the investment cost
Enter the total return (revenue or final value)
View your ROI percentage, net profit, and return multiple

If you enable “Include duration”, the calculator will also estimate:

Annualised ROI
Estimated payback period

All results update automatically when values change.

Understanding Your ROI Results

ROI Percentage

The ROI percentage shows how much profit you made relative to your investment.

A positive ROI means the investment generated a profit
A negative ROI means the investment resulted in a loss

Net Profit

Net profit is the difference between your total return and your investment cost.

Return Multiple

The return multiple shows how many times your investment was returned (for example, 2.0× means you doubled your investment).

What Is Annualised ROI?

Annualised ROI estimates the average yearly return of an investment over a given period. This is useful when comparing investments with different durations.

This calculator estimates annual ROI, assuming returns are evenly spread. Actual returns may differ based on cash flow timing.

What Is the Payback Period?

The payback period shows how long it takes to get back the money you spent.

A shorter payback period usually means less risk. A longer one may mean more risk.

Common Uses for an ROI Calculator

This ROI calculator can be used for:

Marketing and advertising campaigns
Business investments and projects
Property and rental investments
Software and technology purchases
Equipment or capital expenditure decisions

It helps you quickly compare your choices before you spend money.

Limitations of ROI

While ROI is useful, it has limitations:

It does not account for risk
It does not include inflation
It does not reflect the timing of cashflows
It does not include taxes or financing costs

Consider ROI alongside other financial numbers when making choices.

Important Disclaimer

This ROI calculator is only meant to give you a rough idea. It does not give financial advice. Always consult a professional for major investment decisions. View all calculators here.