Return on Investment (ROI) Calculator
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✅ What is ROI?
We use ROI (Return on Investment) to measure how much profit we made from an investment compared with what we put in. ROI = (Gain ÷ Invested) × 100. It shows percentage return so we can compare different projects or time periods. ROI is simple and quick — it tells us whether an investment earned money, and how efficiently our capital worked. Use it as a first check before deeper analysis.
✅ Key features of ROI
- Percentage measure — makes different-sized investments comparable.
- Total gain focus — shows absolute profit (returned − invested).
- Simple vs annualized views — simple ROI shows total percent; annualized ROI converts returns to a yearly rate for fair time comparison.
- Works for any asset — stocks, startups, real estate, marketing campaigns.
- Handles different time inputs — date-based or year-based length to compute annualized returns.
- Visual output — pie or chart breakdown of investment vs gain helps quick decisions. We use ROI as a starting point; for risk, cash flow timing, or volatility, we pair it with other metrics.
✅ Detailed guide to use our ROI calculator
- Enter Amount Invested — how much money we put in originally.
- Enter Amount Returned — final value or proceeds received. If returned < invested, ROI is negative (a loss).
- Pick Currency — UI will prefix formatted amounts with the chosen symbol.
- Choose Investment Length Type — Date Wise uses calendar from/to; Years lets us type a decimal year value (e.g., 2.5).
- If Date Wise — pick From Date and To Date. The calculator computes exact days and converts to years using 365.25. It also flags “special” ranges (exact anniversaries or one-day-before) and rounds years in those cases.
- Click Calculate — outputs shown: Total Gain, ROI (%), Simple Annual ROI (%), Annualized ROI (%), Investment Length (Years). A pie chart and legend show investment vs gain.
- Interpreting results —
- ROI = total percent profit.
- Simple Annual ROI = average yearly percent ignoring compounding.
✅ ROI formulas
- Enter Amount Invested — how much money we put in originally.
- Enter Amount Returned — final value or proceeds received. If returned < invested, ROI is negative (a loss).
- Pick Currency — UI will prefix formatted amounts with the chosen symbol.
- Choose Investment Length Type — Date Wise uses calendar from/to; Years lets us type a decimal year value (e.g., 2.5).
- If Date Wise — pick From Date and To Date. The calculator computes exact days and converts to years using 365.25. It also flags “special” ranges (exact anniversaries or one-day-before) and rounds years in those cases.
- Click Calculate — outputs shown: Total Gain, ROI (%), Simple Annual ROI (%), Annualized ROI (%), Investment Length (Years). A pie chart and legend show investment vs gain.
- Interpreting results —
- ROI = total percent profit.
- Simple Annual ROI = average yearly percent ignoring compounding.
✅ Examples of ROI
Invest $2,000, return $4,000 → Gain = $2,000, ROI = (2000/2000)×100 = 100%.
✅ Who is ROI for?
We use ROI when we want a quick, comparable snapshot of performance. It’s for investors, small business owners, marketers checking campaign payback, product managers testing initiatives, or anyone comparing project returns. ROI is best as an initial filter — we then check annualized returns, risk, and cash-flow patterns for fuller decisions.
✅ Advantages of a ROI
Advantages
- Simple and fast — easy to calculate and understand.
- Comparable — percent form lets us compare different-sized investments side-by-side.
- Flexible inputs — works for money, time, units, or other quantifiable outcomes.
- Helps prioritize — we can rank projects by ROI to allocate capital.
- Supports yearly comparisons — annualized ROI (CAGR) makes multi-year comparisons fair.
- Visual clarity — charts and legends instantly show how much of the final value was gain vs capital.
- We recommend pairing ROI with metrics like payback period, IRR, or risk measures for investment decisions.