ROI Calculator
Enter your investment cost and return amount to calculate ROI percentage.
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ROI Formula
ROI = (Return − Cost) ÷ Cost × 100%
Annualized ROI = ((Return ÷ Cost)^(1/years) − 1) × 100%
Example
Invest $10,000 and receive $13,000 back after 2 years:
- ROI = (13000 − 10000) ÷ 10000 = 30%
- Annualized ROI = (1.3^0.5 − 1) ≈ 14.02% per year
Frequently Asked Questions
ROI = (Return − Cost) ÷ Cost × 100%. Getting $13,000 back on a $10,000 investment is a 30% ROI.
Annualized ROI converts a total return into a per-year rate: ((Return ÷ Cost)^(1/years) − 1) × 100%. A 30% ROI over 2 years is about 14% per year.
Context matters: the long-term stock market average is about 7-10% per year. Higher returns usually come with higher risk.
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