ROI Calculator for Investment Profit and Annualized Return

    How to Calculate Return on Investment and Annualized Return with the ROI Calculator

    Calculate ROI percentage, net profit, annualized return, marketing ROI, required investment, or target return for business and campaign decisions.

    Formula

    ROI = (return - investment) / investment x 100

    How to use the result

    Compare like-for-like time periods and include opportunity cost before ranking investments.

    Annualized ROI requires a reliable holding period and should not be inferred from a zero duration. Inputs and calculations stay in this browser.

    Calculate Return on Investment for business decisions, marketing campaigns, and investments. Make data-driven decisions with clear ROI metrics.

    Calculate Basic ROI

    Investment ROI (Annualized)

    Marketing ROI

    Calculate Target Return

    ROI Benchmarks by Investment Type

    S&P 500 (Avg)

    ~10% annually

    Real Estate

    8-12% annually

    Bonds

    4-6% annually

    Marketing

    5:1 ROAS (400%)

    Private Equity

    15-25% annually

    Venture Capital

    25%+ annually

    Understanding ROI

    ROI = ((Gain - Cost) / Cost) × 100

    Return on Investment (ROI) measures the profitability of an investment relative to its cost. A positive ROI means profit; negative means loss.

    Annualized ROI adjusts returns to a yearly basis, making it easier to compare investments held for different time periods.

    Marketing ROI should account for product costs (COGS) to show true profitability, not just revenue generated.

    What is ROI?

    ROI (Return on Investment) measures profit relative to cost, expressed as a percentage. It is a flexible metric used to compare opportunities, evaluate projects, and understand whether an investment creates value. This calculator supports multiple ROI views so you can match the calculation to your scenario instead of forcing everything into one formula.

    How to Calculate ROI, Profit and Annualized Return

    Basic ROI

    1. Enter your total Gain/Revenue.
    2. Enter your total Cost/Investment.
    3. Review ROI %, net profit, and the profit ratio to compare alternatives quickly.

    Investment

    1. Enter Initial Investment and Final Value.
    2. Add Years Held to see an annualized ROI for apples-to-apples comparison.
    3. Use total ROI for the overall return, and annualized ROI when comparing against yearly benchmarks.

    Marketing

    1. Enter Revenue Generated from the campaign.
    2. Enter Marketing Cost, then include Product/COGS Cost to reflect true profit.
    3. Use the ROAS value to evaluate efficiency, and the ROI value to evaluate profitability.

    Target Return

    1. Enter the Investment Amount.
    2. Set the Target ROI.
    3. Use the required return to set pricing, margin, or revenue targets.

    Interpreting results

    • Negative ROI indicates you are losing money relative to cost.
    • High ROI is not always best if risk or time-to-return is higher; compare annualized ROI for time-based decisions.
    • Marketing ROI depends heavily on attribution; use consistent attribution windows when comparing campaigns.