ROI Calculator
Evaluate the profitability of any investment, real estate project, or business venture. Enter the initial investment cost and final value returned to discover total ROI percentage and annualized ROI.
How to calculate: $20,000 invested, $28,000 returned over 3 years
Net profit divided by total cost multiplied by 100.
Net Profit: $8,000.00
Compounded across 3 years
About ROI Calculator
Evaluate the profitability of any investment, real estate project, or business venture. Enter the initial investment cost and final value returned to discover total ROI percentage and annualized ROI.
Primary Purpose: Calculate Return on Investment percentage and annualized rate
How to Use the ROI Calculator
- 1Enter Amount Invested (Initial Cost) and Amount Returned (Final Value).
- 2Optionally specify Investment Duration in years.
- 3Get total dollar gain, total ROI %, and annualized return.
Formula & Methodology
Net profit divided by total cost multiplied by 100.
Real-World Worked Examples
$20,000 invested, $28,000 returned over 3 years
Frequently Asked Questions
Why is Annualized ROI important?
A 50% ROI earned over 2 years is far superior to a 50% ROI achieved over 15 years. Annualized ROI normalizes performance on a per-year basis.
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