Use our free ROI Calculator to instantly measure the profitability of your investments. Whether you're tracking business growth, stock performance, or marketing spend, get accurate net profit, total ROI, and annualized returns in seconds.
← Back to All Calculator Tools
Understanding the efficiency of an investment is crucial for both personal finance and business strategy. Our ROI Calculator provides a simple yet powerful way to determine exactly how much profit or loss you have generated relative to the cost of your investment. By calculating the Return on Investment (ROI), you can make data-driven decisions about where to allocate your capital next.
ROI is a universal metric used to compare the profitability of different investments. Whether you are comparing two different stocks, evaluating a marketing campaign, or deciding on a real estate purchase, the ROI percentage gives you a clear baseline. For business owners, using this tool alongside our Gross Margin Calculator can provide a comprehensive view of business health.
While total profit tells you how much money you made, ROI tells you how efficiently you made it. A $1,000 profit on a $1,000 investment (100% ROI) is significantly better than a $1,000 profit on a $10,000 investment (10% ROI).
In digital marketing, people often confuse ROI with ROAS (Return on Ad Spend). While ROI accounts for all costs (including overhead and labor), ROAS typically only looks at the direct revenue generated from ad spend. If you are specifically looking at advertising performance, you might also find our ROAS Calculator helpful for your campaign analysis.
The standard ROI formula is: ((Current Value - Initial Cost) / Initial Cost) * 100. This gives you the percentage return on your original investment.
Yes. A negative ROI indicates that the investment has lost money. For example, if you invest $100 and only get $80 back, your ROI would be -20%.
Annualized ROI is useful for comparing investments held for different lengths of time. A 50% return over 10 years is very different from a 50% return over 1 year. Annualizing the return levels the playing field so you can see the yearly efficiency.