ROI Calculator (Return on Investment)

Return on investment is a blunt but useful measure: what did you get back relative to what you put in. Raw ROI ignores time, which flatters slow investments, so this calculator also reports the annualised figure that lets you compare a two-year project against a ten-year one fairly.

How to use it

1. Enter the total amount invested, including fees and setup costs.
2. Enter the total amount returned or the current value.
3. Enter how long the money was invested, in years.
4. Compare the annualised ROI against alternatives such as an index fund or paying down debt.

Frequently asked questions

Why does annualised ROI matter more than total ROI?

A 100% total return is excellent over three years and mediocre over twenty. Annualising converts both to a comparable yearly rate — about 26% versus 3.5% in that example.

Should I include fees in the investment amount?

Yes. Transaction fees, platform charges, and setup costs are real capital outlay. Excluding them systematically overstates returns.

Can ROI be negative?

Yes. If the amount returned is less than the amount invested, the ROI is negative and represents the percentage of capital lost.

Does ROI account for risk?

No, and that is its main weakness. A 12% return from government bonds and a 12% return from a single speculative stock are not comparable despite an identical ROI.

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