Calculate Return on Investment (ROI), annualized return, and net gain or loss for any investment over any time period.
Calculate your return on investment (ROI) instantly with our free calculator, a straightforward way to measure how profitable an investment has been.
ROI = (Net Profit ÷ Cost of Investment) × 100
Net Profit is calculated as the final value of the investment minus the initial cost.
This varies significantly by investment type and time horizon. Comparing ROI against relevant benchmarks (like market averages for similar investments) provides more context than a universal number.
Basic ROI doesn't factor in time, a 20% ROI over 1 year is very different from 20% over 10 years. Consider annualized return metrics for time-sensitive comparisons.
For an accurate picture of actual returns, yes, net cost and net profit should account for transaction fees, taxes, and other costs where applicable.
ROI is a simple percentage return over the whole period; IRR accounts for the timing of cash flows and effectively provides an annualized rate, useful for comparing investments with different cash flow patterns.