— Investment
ROI Calculator
Work out the return on an investment — the percentage gain or loss on what you put in.
Return on investment
30%
- Net gain
- $3,000
— How it works
ROI = (Amount returned − Amount invested) ÷ Amount invested × 100
What ROI tells you
Return on investment is the simplest measure of how an investment did: the gain or loss as a percentage of what you put in. A positive ROI means you came out ahead; a negative one means you lost money. Because it is a ratio, it lets you compare investments of very different sizes on equal terms.
Worked example — invest $10,000, get back $13,000: Net gain = 13,000 − 10,000 = $3,000. ROI = 3,000 ÷ 10,000 × 100 = 30%.
ROI ignores time
ROI on its own says nothing about how long the money was invested — a 30% return is far better earned in one year than in ten. So when comparing investments held for different lengths of time, total ROI can mislead.
For a per-year figure that compounds to the same result, use an annualized return. A 30% total return over three years, for instance, is only about 9.1% a year — the CAGR calculator works that out from a start value, an end value and the time between them.
What ROI leaves out
Plain ROI does not account for fees, taxes or the timing of any cash you added or withdrew along the way — only the start and end amounts. For a return that weights interim cash flows, an internal rate of return (IRR) is the right tool; to judge the risk behind a return, you also need a measure of volatility.
— Reader questions
What is a good ROI?
It depends entirely on the investment, the risk and the time involved. A 10% ROI earned in a month is exceptional; the same 10% over a decade is poor. Always judge ROI against the holding period and the risk taken — and for a per-year comparison, convert it to an annualized return with the CAGR calculator.
How is ROI different from CAGR?
ROI is the total percentage gain over the whole period; CAGR is that same gain expressed as a steady rate per year. This calculator shows total ROI — for the annualized figure, use the CAGR calculator. For a one-year holding the two are identical; over multiple years CAGR is lower because it accounts for compounding.
Can ROI be negative?
Yes. If the amount returned is less than the amount invested, ROI is negative — the percentage of your investment that was lost. A total loss is an ROI of −100%.
Does ROI include fees and taxes?
Only if you fold them into the figures yourself — enter the net amount returned after costs, and add any fees to the amount invested. The raw formula uses just the two amounts you provide.