ROI Calculator

Enter the initial amount invested and the ending value. ROI measures the gain or loss relative to the original cost.

ROI is useful for a quick comparison, but it does not account for how long the investment was held. Two investments with the same ROI can have very different annualized returns.

Omar invests $10,000 and later receives $12,500, with no intermediate cash flows or additional costs. His gain is $2,500 and his return on investment is $2,500 ÷ $10,000 × 100 = 25%.

That is a total return for the entire holding period. It is not a 25% annual return unless the holding period is exactly one year. Include relevant costs in the inputs when comparing outcomes.

If an investment costs $1,000 and ends at $1,200, the gain is $200 and ROI is 20%. An ending value of $800 gives a 20% loss.

Include relevant costs in the starting amount and any received distributions in the ending value if you want them reflected. This is total ROI, not an annualized return.

A 25% total ROI earned in one year is different from 25% earned over five years. The percentage above measures the full gain relative to the starting cost; it does not convert the result to a yearly growth rate.

If you received income such as dividends, include it consistently in the ending proceeds for a simple total-return comparison. Investments with several deposits or withdrawals at different dates need a cash-flow-based method.