Return on Investment (ROI) Calculator
Calculate your return on investment with comprehensive analysis including costs, fees, additional income, and annualized returns.
Amount initially invested
Current value or selling price
Fees, commissions, taxes, maintenance (optional)
How long you held the investment (for annualized return)
Dividends, rent, interest received (optional)
What is ROI and how do I calculate it?
ROI (Return on Investment) measures profitability as a percentage: ROI = [(Current Value - Initial Investment - Costs) / Initial Investment] × 100. A 25% ROI means you gained $25 for every $100 invested. ROI is simple and universal - use it for stocks, real estate, marketing campaigns, business projects, education, or any investment. Positive ROI = profit, negative ROI = loss. It's the most basic investment metric.
What is a good ROI percentage?
Good ROI depends on context: Stock market average = 10%/year, Real estate = 8-12%/year, Small business = 15-30%/year, Marketing campaigns = 500-800% (5-8x return), Angel investing = 25-50%/year but high risk. Consider: Time period (10% in 1 year vs 10 years differs), Risk level (higher risk should demand higher ROI), Opportunity cost (beat alternative investments). ROI above 20% annually with moderate risk is excellent.
How is ROI different from annualized return?
ROI is total return regardless of time: 50% ROI could be over 1 year or 10 years. Annualized (CAGR) shows yearly rate: 50% over 5 years = 8.4%/year, 50% over 1 year = 50%/year. Use ROI for: Quick comparisons, short-term investments (<1 year), simple calculations. Use annualized return for: Long-term investments, comparing different timeframes, accurate performance measurement. This calculator shows both.
Should I include fees and taxes in ROI calculation?
Yes, for accurate ROI include all costs: Purchase costs (commission, closing costs), holding costs (maintenance, management fees), selling costs (agent fees, capital gains tax). Example: Stock bought at $10,000, sold at $12,000 looks like 20% ROI, but with $500 buy commission, $500 sell commission, and $300 tax, real ROI = 7%. Always calculate net ROI (after all costs) for true profitability.