ROI Calculator
Enter what an investment cost and what it is worth now to see the net profit and ROI percentage instantly. Add the holding period in years and the tool also computes the annualized return (CAGR), which lets you compare investments of different durations fairly — a marketing campaign, a machine purchase, a training budget or a portfolio position all become comparable with one number.
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Frequently asked questions
How is ROI calculated?
ROI = (final value − cost) ÷ cost × 100. An investment of 10,000 that grows to 15,000 has an ROI of (15,000 − 10,000) ÷ 10,000 × 100 = 50%.
Why does annualized ROI (CAGR) matter?
Total ROI ignores time: 50% earned over 2 years and over 5 years look identical. CAGR = (final ÷ cost)^(1/years) − 1 converts the return to a compound annual rate — 50% over 2 years equals 22.47% per year. Only this rate makes different holding periods comparable.
What does a negative ROI mean?
If the final value is below the cost, ROI is negative and shows the loss rate. An investment of 10,000 now worth 8,000 has an ROI of −20%.
Which costs should be included?
All of them: purchase price, fees and commissions, maintenance, ad spend, labor. Leaving costs out inflates the ROI and can make a losing investment look profitable.