ROI Calculator (Return on Investment)
Free ROI calculator. Calculate return on investment percentage, payback period, and annualized returns instantly. Make smarter investment decisions.
Total amount invested (cost of investment)
Current value or final return from investment
Investment period for annualized ROI calculation
Calculation Results
Interpretation
Below average ROI. You might want to review this investment.
What is a ROI Calculator (Return on Investment)?
The ROI Calculator is a powerful financial tool for evaluating the profitability and efficiency of investments, business projects, marketing campaigns, and capital expenditures. ROI (Return on Investment) is one of the most widely used metrics for comparing different investment opportunities and measuring performance.
Whether you're a business owner evaluating equipment purchases, a marketer measuring campaign effectiveness, an investor analyzing stocks or real estate, or a manager justifying project budgets, understanding ROI is essential for making data-driven decisions.
This calculator computes ROI percentage, absolute return, payback period, and annualized ROI - giving you a comprehensive view of investment performance over time.
How to Calculate ROI (Step-by-Step)
- 1
Enter Initial Investment amount - the total upfront cost or capital invested.
- 2
Enter Final Value or Return - what the investment is worth now or total revenue generated.
- 3
Optionally add Investment Period (months/years) to calculate annualized ROI.
- 4
The calculator instantly shows: Total Return (profit/loss), ROI Percentage, Payback Period.
- 5
For annualized ROI, enter time period to see return adjusted for investment duration.
- 6
Compare multiple investments side-by-side to determine the best opportunity.
Example Use Cases with Sample Data
Marketing Campaign ROI
Company spent $10,000 on Facebook ads and generated $35,000 in sales
Input:
Investment: $10,000 | Return: $35,000 | Period: 3 months
Result:
ROI: 250% | Profit: $25,000 | Annualized ROI: 1000% | Highly successful
Equipment Purchase Decision
Manufacturing company evaluating $100,000 machine expected to save $30,000/year
Input:
Investment: $100,000 | Annual Savings: $30,000 | Period: 5 years
Result:
Total Return: $150,000 | ROI: 50% | Payback: 3.3 years | Good investment
Stock Investment Analysis
Investor bought stocks for $5,000, now worth $7,500 after 2 years
Input:
Initial: $5,000 | Current Value: $7,500 | Period: 24 months
Result:
ROI: 50% | Profit: $2,500 | Annualized ROI: 22.47% | Beat market average
Employee Training ROI
Company invested $20,000 in training, increased productivity worth $50,000
Input:
Training Cost: $20,000 | Productivity Gain: $50,000 | Period: 12 months
Result:
ROI: 150% | Net Benefit: $30,000 | Payback: 4.8 months | Excellent ROI
Key Features & Benefits
Features
Multiple ROI Metrics
Calculate simple ROI, annualized ROI, and compound annual growth rate (CAGR)
Payback Period Calculator
Determine how long it takes to recoup your initial investment
Time-Adjusted Returns
Annualize ROI to fairly compare investments of different durations
Investment Comparison Tool
Compare ROI across multiple investments simultaneously
Break-even Analysis
Calculate the minimum return needed to break even
Risk-Adjusted ROI
Factor in risk levels to evaluate true investment quality
Benefits
- Make objective investment decisions based on quantitative data
- Compare diverse investment opportunities on equal footing
- Justify business expenditures with clear ROI projections
- Optimize marketing budget allocation to highest-ROI channels
- Set realistic performance expectations for projects
- Track actual vs projected ROI to improve future estimates
- Communicate value of initiatives to stakeholders and executives
Frequently Asked Questions
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Ready to Get Started?
ROI is the universal language of business decisions. Our free ROI Calculator helps you evaluate any investment opportunity with confidence, ensuring you allocate resources to the highest-return activities that drive real business growth.
Calculate your ROI now - enter your investment amount and returns above to see instant analysis of your investment performance.