Calculate ROI

Compare investment profit with its initial cost and convert the result into a compound annual rate for the holding period.

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ToolROI Calculator
Input
Output
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How it works

Total return divides final value minus initial cost by that initial cost. Annualisation takes the holding-period root of the value multiple, so doubling over three years gives 25.99% a year rather than 33.33%; one year is the default comparison period.

Formula
ROI = (final value − initial cost) ÷ initial cost × 100
annualised return = (final value ÷ initial cost)^(1 ÷ years) − 1
  • Profit remains an amount while total and annualised return are percentages.
  • Doubling time is shown only for a positive annualised rate.

Worked example

Doubling money in three years
5,000 in, 10,000 out
Input
											Initial: 5000
Final value: 10000
Years: 3
Output
												ROI percent: 100
Annualised percent: 25.99
Profit: 5000
Multiple: 2
Doubling years: 3 years at this rate

When to use this

Portfolio comparisons, marketing campaign reports, and equipment proposals use cost, terminal value, and holding time to compare unlike investments.

Edge cases

  • A final value of 0 produces -100% total and annualised return rather than attempting a logarithm for doubling time.
  • A final value below the initial amount reports doubling time as never at this rate.
  • An initial amount of 0 is rejected because ROI has no cost denominator.