ROI Calculator

This ROI calculator measures how efficiently an investment or project turned cost into value. It is useful for comparing business projects, property deals, marketing campaigns, and personal investments where you want a quick return snapshot.

ROI is intuitive because it compresses the result into one percentage, but a good decision usually needs more than one number. That is why this calculator also shows net profit, total cost basis, and an annualized return estimate.

Annualization matters because two projects can report the same ROI while taking very different lengths of time to get there.

Enter the original amount invested, the final value received, and any additional costs you want included in the cost basis.

Use the holding period to annualize the return properly before comparing one opportunity with another.

Use ROI for fast screening, then compare annualized return when different opportunities have different timelines.

Total cost basis equals the initial investment plus any additional costs entered.

Net profit equals final value minus total cost basis. ROI equals net profit divided by total cost basis.

Annualized return is derived from the ratio between ending value and cost basis over the holding period in years.

If an investment grows from 10,000 to 14,500 and you incurred 250 in additional costs, the true cost basis is 10,250 rather than 10,000. That changes the return percentage.

A lower raw ROI earned over one year can still be stronger than a higher raw ROI earned over five years once annualized.

ROI tells you how much profit was created per unit of cost. Annualized return tells you how quickly that value was created over time.

When comparing projects, cost basis discipline matters. Omitting smaller fees can make poor projects look stronger than they are.