ROI Calculator
Calculate return on investment. Enter initial investment and final value.
ROI inputs
Enter investment cost, final value, income, fees, costs, and holding period.
Amount originally invested or spent.
Current, sale, or ending value of the investment.
Income, dividends, rent, sales revenue, or distributions.
Operating costs, maintenance, marketing, or project costs.
Platform, transaction, broker, advisor, or service fees.
Use decimals for partial years, such as 1.5.
Optional comparison return assumption.
ROI
50.94%
Strong positive ROI: This scenario shows a high return relative to the invested amount.
Net profit / loss
£5,400.00
Total return value minus total investment cost.
Annualized ROI
14.71%
3 year holding period.
Total cost
£10,600.00
Initial investment plus costs and fees.
Total return value
£16,000.00
Final value plus additional revenue or income.
Return multiple
1.51×
Total return value divided by total cost.
Break-even value
£9,600.00
Final value needed to break even after income.
Benchmark difference
£3,014.54
Compared with 7.00% annual benchmark.
Support
ROI support layer
Formula based
Calculates ROI, net profit, annualized ROI, return multiple, and break-even value.
Estimate only
Results are estimates and do not include tax rules, inflation, opportunity cost, or risk adjustments.
Decision focused
Use ROI to compare projects, marketing campaigns, investments, and business decisions.
Interpretation
What these ROI results mean
Return on investment
Your ROI is 50.94%, based on net profit of £5,400.00 and total cost of £10,600.00.
Net profit
The scenario returns £16,000.00 against total cost of £10,600.00, creating £5,400.00 in net profit or loss.
Annualized view
Over 3 years, the annualized ROI is approximately 14.71%.
Benchmark comparison
At the benchmark rate, the comparable ending value would be about £12,985.46.
Basics
How ROI works
Investment cost
Investment cost is the total amount spent, including the initial investment, extra costs, and fees.
Return value
Return value includes final value plus additional revenue, dividends, or income.
Net profit
Net profit is what remains after subtracting total cost from total return value.
ROI percentage
ROI shows net profit as a percentage of the total cost basis.
Comparison
ROI vs annualized ROI
ROI
50.94%
ROI shows the total return across the whole period, regardless of how long the investment was held.
Annualized ROI
14.71%
Annualized ROI converts the total result into a smoothed yearly rate for easier comparison.
Context
What ROI does not show
Risk
A high ROI may come with higher uncertainty, volatility, leverage, or business risk.
Timing
Simple ROI does not fully reflect when cash flows happened unless you model them separately.
Taxes
Taxes may reduce actual after-tax ROI depending on location, account type, and transaction type.
Opportunity cost
ROI does not automatically compare what the money could have earned elsewhere.
Inflation
Inflation reduces purchasing power, so nominal ROI is not the same as real ROI.
Volatility
ROI does not show how smooth or unstable the path to the final result was.
Use cases
Common ROI calculator use cases
Business projects
Compare project cost with revenue, savings, or resale value.
Marketing campaigns
Estimate return from campaign revenue against ad spend and fees.
Real estate
Compare property value and income against purchase cost and expenses.
Investments
Estimate gain or loss after fees, dividends, and final value.
Equipment purchases
Compare equipment cost with productivity gains or revenue impact.
Training or software
Estimate return from time savings, revenue growth, or efficiency gains.
Formula
ROI formula explanation
Net profit
Net Profit = Total Return Value − Total CostTotal return value includes final value plus income. Total cost includes investment, costs, and fees.
ROI
ROI = Net Profit ÷ Total Cost × 100ROI shows the gain or loss as a percentage of the total cost invested.
Annualized ROI
Annualized ROI = (Total Return Value ÷ Total Cost)^(1 / Years) − 1Annualized ROI converts total ROI into a smoothed yearly compound rate.
FAQ
ROI calculator questions
ROI stands for return on investment. It compares net profit with the amount invested and shows the result as a percentage.