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ROI expresses net profit as a percentage of the total investment cost. Higher ROI indicates more efficient use of capital.
ROI % = ((Gain − Cost) ÷ Cost) × 100For investments held over multiple periods, annualized ROI allows fair comparison across different time horizons.
Annualized ROI = [(1 + ROI/100)^(1/years) − 1] × 100The ROI Calculator applies industry-standard financial equations used by lenders, accountants, and planners. All intermediate values are computed with floating-point precision and rounded only for display.
Result = f(principal, rate, period, …)Updated: July 2026
A small business evaluates ROI on a digital marketing campaign that generated $22,000 in attributable revenue.
→ Net profit: $9,000, ROI: 180%
An investor calculates ROI on a property flip including $25,000 in renovation costs.
→ Net profit: $40,000, ROI: 19.5%
A homebuyer runs the ROI Calculator with two interest rates side by side to compare total interest paid over 30 years before choosing a lender.
ROI must use net gain after all costs. $22K revenue on $5K ad spend is not 340% ROI if product costs are $8K. Subtract all expenses first.
A 50% ROI in 1 year beats 50% ROI in 5 years. Use annualized ROI or compare against a hurdle rate adjusted for time and risk.
Use our free ROI Calculator for fast, accurate results in your browser. No signup or installation required — works on any device.