WorldCalcs

ROI Calculator

Find your net gain, total ROI, and annualized ROI from any investment.

Reviewed by the WorldCalcs team · Methodology · Last reviewed: July 2026

ROI

20.00%

Net gain

200.00

Annualized ROI

9.54%

Results are estimates for general information only, not financial advice. See our Disclaimer.

What is return on investment (ROI)?

Return on investment, or ROI, measures how much you gained or lost compared with what you put in. Invest 1,000, get back 1,200, and your net gain is 200 — an ROI of 20%. Because it boils everything down to a single percentage, ROI lets you line up very different opportunities, from a stock to a piece of equipment to a marketing campaign, and compare them on the same scale.

How ROI is calculated

The basic figure uses only two numbers:

  • Net gain = Amount returned − Amount invested
  • ROI % = (Net gain ÷ Amount invested) × 100

A plain ROI ignores time, so a 20% return earned in one year looks the same as 20% earned over ten. Annualizing fixes that by spreading the total return evenly across the holding period:

  • Annualized ROI % = ((Amount returned ÷ Amount invested)^(1 ÷ years) − 1) × 100

Worked example

You invest 1,000 and later receive 1,200. The net gain is 200, so the ROI is 200 ÷ 1,000 = 20.00%. If that took two years, the annualized ROI is (1,200 ÷ 1,000)^(1 ÷ 2) − 1 = 9.54% per year — noticeably lower than the headline 20%, because the same total gain is now shared across two years.

Related: project future growth with our Investment Calculator and Compound Interest Calculator, price products with the Margin Calculator, or crunch generic ratios in the Percentage Calculator.

All calculations happen in your browser. Nothing is sent, stored, or tracked.

Results are estimates and may contain errors — for general information only, not professional advice. Always verify before relying on them. Disclaimer

How to use

Enter the amount you invested and the total amount you got back. Add the holding period in years to see the annualized rate.

ROI is measured as a percentage of what you put in, so it lets you compare very different opportunities on the same scale.

Frequently asked questions

What counts as a good ROI?+

It depends entirely on the risk you took and the alternatives you passed up. A return that is excellent for a low-risk savings product would be poor for a risky venture. This calculator gives you the precise number; judging whether it is "good" is up to you and your goals.

What is the difference between ROI and annualized ROI?+

Plain ROI is the total return over the whole period. Annualized ROI restates it as an average per-year rate, which is the only fair way to compare investments held for different lengths of time.

Can ROI be negative?+

Yes. If you get back less than you put in, the net gain is negative and so is the ROI — a return of 900 on a 1 000 investment is a −10% ROI.

How do I calculate ROI as a percentage?+

Subtract the amount invested from the amount returned, divide by the amount invested, and multiply by 100.

What is the difference between ROI and profit?+

Profit is the money you made in currency; ROI is that profit expressed as a percentage of what you invested. Two deals can have the same profit but very different ROI.

How does the holding period change ROI?+

It doesn't change the total ROI, but it changes the annualized figure: the longer you hold, the more years the same total gain is spread over, so the annualized rate falls.

Is ROI the same as rate of return?+

They are closely related. Annualized ROI is effectively the compound rate of return per year, which is what most people mean by "rate of return."

Does this calculator include fees, dividends, or taxes?+

No — it works purely from the two amounts you enter. If you want an after-cost figure, put your net proceeds (after fees and tax) in the "amount returned" box.

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