WiseCalc

ROI Calculator

Calculate return on investment from initial cost and final value, including annualized ROI for multi-year investments.

$
$0$100,000
$
$0$200,000
years
0 years30 years

Single initial investment and final value; no intermediate cash flows, fees or taxes. ROI is net profit divided by initial investment. Annualized ROI compounds that value ratio over the entered years and requires positive initial investment and duration. Cost-to-profit is initial investment divided by net profit; it is negative for losses and undefined at break-even. Displayed money is rounded to cents.

Net Profit
$5,000.00
Return on Investment (ROI)
50.0%
Annualized ROI
8.4%
Cost-to-Profit Ratio
2.00

Investment Value and Profit

Use ROI to Compare Competing Projects

ROI measures how much return you generated relative to the cost of the investment. It is a quick screening tool for marketing campaigns, equipment purchases, software projects, and other business decisions.

A high ROI is good, but timing still matters. Two projects with the same total ROI can be very different if one pays back in six months and the other takes five years.

How to use this calculator

  1. Enter the total amount invested and the total value returned or gained.
  2. Subtract cost from return to find net profit.
  3. Divide net profit by cost to calculate ROI.
  4. Compare projects using both ROI and the time required to achieve it.

Frequently Asked Questions