ROI Calculator: Return on Investment
Enter what you put in, what you got back and what it cost you. See your profit, your return and your yearly return, including the effect of inflation.
What we noticed
Year by year
How this calculator works
Return on investment (ROI) is your profit divided by what you put in. Profit is what you got back, minus what you put in, minus any fees, commissions and taxes.
ROI does not say how long it took. A 40% return over 2 years is much better than 40% over 10 years. So we also work out your yearly return, using compound growth, and your yearly gain after inflation.
For cash that comes in over several years, such as rent or dividends, use the IRR calculator.
The formulas
| Profit | Amount back - costs - amount put in |
|---|---|
| ROI | Profit / amount put in |
| Yearly return | (1 + ROI) ^ (1 / years) - 1 |
| After inflation | (1 + yearly return) / (1 + inflation) - 1 |
Sources: Background reading, Investor.gov: Annual return, Background reading, Investor.gov: Compound interest
Frequently asked questions
How do I calculate ROI?
Take what you got back, subtract what you put in and any costs, and divide the result by what you put in.
What is a good ROI?
It depends on how long you held it and how risky it was. Compare the yearly return, not the total, with other options.
Does ROI include fees and taxes?
It should. Enter every cost in the costs box so the result matches what you really kept.
Why does inflation matter?
If prices rise 3% a year, an investment must grow more than 3% a year to buy more than before. The inflation line shows your real gain.