Finance
Return on Investment (ROI) Calculator
Calculate ROI as percent gain relative to cost (workbook: Return on Investment (ROI)).
Free to use — no sign-up or login.
ROI
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Amortization schedule
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Return on investment (ROI) answers a simple question: relative to what you put in, how much did the position gain or lose? This calculator takes an initial cost and a final value, subtracts to get the net change, divides by the cost, and scales to a percent. A result above zero is a gain; below zero is a loss.
ROI is not annualized and does not know how long you held the position. For a constant yearly rate over several years, use the CAGR Calculator or How to Calculate CAGR. The walkthrough for this identity is How to Calculate ROI.
What the two inputs mean
Initial cost is the money tied up at the start — purchase price, capital contributed, or project outlay, depending on the story you are telling. Final value is what that same stake is worth (or returned) at the end. The calculator does not add dividends, subtract fees, or prorate partial sales; if those matter, fold them into the two numbers before you type them.
ROI is not the same as CAGR or ROAS
ROI is a single percentage for the whole period. CAGR spreads growth into an equivalent annual rate and needs a year count. Return on ad spend (ROAS) divides advertising revenue by ad spend and is usually quoted as a multiple, not a percent gain on cost — see the ROAS Calculator when that is the metric you want.
Worked example: $1,000 cost to $1,350 final value
The page defaults use an initial cost of $1,000 and a final value of $1,350. Net gain = 1350 − 1000 = $350. ROI = (350 / 1000) × 100 = 35%. If the final value were $800 instead, the same formula would give (800 − 1000) / 1000 × 100 = −20%.
\[ \text{ROI}=\frac{1350-1000}{1000}\times 100=35\% \]
Frequently asked questions
Does ROI include the time I held the investment?
No. A 35% ROI in three months and a 35% ROI in three years look identical here. To compare periods of different lengths on an annual basis, use CAGR with an explicit year count.
Should fees and taxes go in the cost or the final value?
Whichever placement matches how you define the stake. Common practice is to raise initial cost by purchase fees and lower final value by exit fees or taxes you want in the ratio. The tool only sees the two totals you enter.
What if initial cost is zero?
ROI is undefined when cost is zero — there is nothing to divide by. Enter a positive initial cost that represents the capital at risk.
Is a higher ROI always better?
Not by itself. Risk, liquidity, holding period, and cash you could not deploy elsewhere all sit outside this percentage. Use ROI as one comparison number, not a ranking of every opportunity.
Sources
Assumptions and limitations
Finance results are illustrative. They typically omit taxes, fees, prepayment penalties, and product rules, and they are not investment or lending advice.
ROI here is (final − cost) / cost as a percent. It omits holding period, interim cash flows unless you bake them into the inputs, fees, and taxes. It is not a forecast and not investment advice.