How is ROI calculated?

ROI is the net gain divided by the amount invested, expressed as a percentage — (final value minus cost) divided by cost times 100.

What is annualised ROI?

Annualised ROI converts your total return into an equivalent per-year rate using compounding, so investments held for different periods can be compared fairly.

When should I look at annualised ROI instead of total ROI?

Use annualised ROI to compare investments held for different lengths of time. A 50% total return earned over two years (about 22.5% a year) is very different from 50% earned over ten years (about 4.1% a year), even though the total ROI is identical.

Yes. If the final value is less than the amount invested, the net gain is negative and the ROI is a loss expressed as a negative percentage.

Does ROI include fees, taxes or dividends?

Only what you enter. If you want a net figure, put your after-fee, after-tax proceeds in the final value and include any dividends or income you received. The calculator does not add them automatically.

What counts as a good ROI?

It depends on the asset and risk. Broad stock market indices have historically averaged roughly 7–10% a year before inflation, so an annualised ROI in that range is often considered solid for a diversified investment.

Is my investment data sent anywhere?

No — every calculation runs entirely in your browser and nothing you type is uploaded.

What is the ROI Calculator?

Free ROI calculator that works out return on investment, net gain and annualised return from your amount invested, final value and holding period. Runs entirely in your browser — nothing is uploaded. It runs free in your browser on Gera Tools, with nothing uploaded.

ROI Calculator — Gera Tools

Name: ROI Calculator
Creator: Gera Tools
License: https://creativecommons.org/licenses/by/4.0/

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ROI calculator

Return on investment (ROI) measures how much an investment gained or lost relative to its cost. Enter the amount invested, the final value and the holding period, and this calculator returns the total ROI, the net gain, and an annualised return so you can fairly compare investments held for different lengths of time. It works for stocks, property, business projects or any one-off investment.

How it works

Total ROI is the net gain divided by the cost:

ROI = (final value − amount invested) ÷ amount invested × 100

To make holding periods comparable, the calculator also annualises the return using compounding:

annualised ROI = (final value ÷ amount invested)^(1 ÷ years) − 1

The annualised figure only appears when the invested amount, final value and period are all positive.

Example

You invest 1,000, it grows to 1,500 over 2 years:

Net gain = 1,500 − 1,000 = 500
ROI = 500 ÷ 1,000 = +50%
Annualised = (1,500 ÷ 1,000)^(1 ÷ 2) − 1 ≈ +22.47% per year

Invested	Final value	Years	ROI	Annualised
1,000	1,500	2	+50%	+22.47%
1,000	1,500	5	+50%	+8.45%
1,000	800	1	−20%	−20%

The table above shows why the holding period matters so much: a 50% total return sounds the same whether you held for two years or five, but the annualised rate drops from 22.47% to 8.45% — a meaningful difference when comparing alternative investments.

Why annualised ROI matters more than total ROI

Total ROI is fine when you are comparing two investments of the same duration. As soon as the time horizons differ, it misleads. A property that doubled in value over 15 years has a 100% total ROI, but its annualised rate is only about 4.7% per year — below what many diversified portfolios have historically delivered. Annualised ROI lets you place every investment on the same measuring scale regardless of when it was made or how long it was held.

What ROI does not capture

This calculator computes simple investment ROI from the numbers you enter. A few important things are not included unless you account for them in your final value:

Taxes — capital gains tax reduces net proceeds. Enter your after-tax final value for a net-of-tax ROI.
Fees and commissions — brokerage fees, management fees and transaction costs reduce the real return. Subtract them from the final value.
Dividends and income — for stocks and rental property, the income generated during the holding period adds to return. Add dividends or rental income received to the final value for a total-return figure.
Inflation — a 10% nominal return in a high-inflation year may leave you no better off in real terms. This tool does not adjust for inflation.

For a business context, ROI is often calculated on a specific project or marketing campaign: amount spent is the investment, revenue generated less costs is the net gain. The same formula applies.

All maths happens in your browser — your figures never leave your device.