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Financial Analysis

ROI Calculator

Evaluate the efficiency of your investments. Calculate Return on Investment and annualized profits with precision.

Profitability
Net Profit Analysis
Annualized
Time-Weighted ROI

What is Return on Investment (ROI)?

Return on Investment (ROI) is a popular profitability metric used to evaluate how well an investment has performed. It is expressed as a percentage and compares the gain or loss from an investment relative to its cost.

ROI Formula

ROI = ((Final Value - Initial Investment) / Initial Investment) × 100

A positive ROI means the investment has gained value, while a negative ROI implies a loss.

Annualized ROI

Simple ROI doesn't account for the time period. A 20% return over 1 year is fantastic, but over 20 years, it's poor. Annualized ROI solves this by calculating the yearly growth rate:

Annualized ROI = [(Final Value / Initial Investment)^(1/n)] - 1