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Financial Planning

ROI Calculator

Calculate return on investment (ROI), net profit and money multiple, with an optional annualized ROI over a holding period.

Your inputs

Results

Return on investment

50%

Net profit
$500.00
Money multiple
1.5 ×

✓Exact calculation — rounded only for display

Inputs are never added to links for financial, salary or health calculators.

What this calculator does

ROI is the simplest measure of how much an investment returned relative to its cost. It works for stocks, projects, equipment or marketing — anything with a cost and a result.

Formula and method

ROI = (amount returned − amount invested) ÷ amount invested Annualized ROI = (returned ÷ invested)^(1/years) − 1

Worked example

Calculated by this tool with its default inputs:

Inputs

  • Amount invested (cost): 1000 (any currency)
  • Amount returned (final value): 1500 (any currency)
  • Holding period (optional, for annualized ROI): years

Results

  • Return on investment: 50%
  • Net profit: 500
  • Money multiple: 1.5 ×

How to read the results

ROI ignores time, so a 50 % return over one year and over ten years look the same. Add a holding period to compare fairly.

Assumptions and limitations

  • Include all costs in the amount invested for a fair figure.

Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.

Questions

Can ROI be negative?

Yes. A negative ROI is a loss; −100 % means everything was lost.

Methodology and verification

Result type
Exact mathematical calculation (rounded only for display)
Formula version
1.0
Automated verification
4 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
Editorial review
Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.

Privacy

Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Because this calculator can involve personal financial or health details, your inputs are never added to share links or saved to history. Privacy policy