ROI Calculator

What this calculator does

This roi calculator is built for the moment you need a defensible number — quoting a client, comparing options, or checking someone else's math — not a generic estimate.

Return on Investment (ROI) measures profitability as a percentage of the money you put in. It's the single most common way to compare investments, marketing campaigns, real-estate deals and business projects on an apples-to-apples basis. This calculator gives you total ROI, net profit, the multiple on your money, and the annualized (CAGR) return so short and long-duration investments can be compared fairly.

Common mistakes

• Reporting total ROI without stating the time period
• Ignoring fees, taxes and transaction costs
• Comparing ROI across investments of different durations
• Confusing ROI with profit margin (which is % of revenue, not cost)
• Not accounting for reinvested dividends or cash flows

When to use it

Use ROI to size marketing budgets, evaluate stock or property returns, rank capital projects, and communicate performance to stakeholders. Always report the time period alongside ROI — a 25% return over 5 years is very different from 25% in one year.

Pro tips for the ROI Calculator

• Copy the result to paste it directly into email, Notion, or a spreadsheet cell.
• Use Print / PDF to export a clean, ad-free summary you can share with a client or advisor.
• The chart updates live — drag values up and down to build intuition for how the formula behaves.

Frequently asked questions

›What is a good ROI?

For long-term stock investing, ~7–10% annualized is a common benchmark (roughly the S&P 500 average). Marketing ROI targets are often 5:1 or higher; real estate 8–12% cash-on-cash.

›ROI vs CAGR — which should I use?

ROI is the total return over the entire period. CAGR (annualized ROI) tells you the equivalent yearly rate. Use CAGR whenever the holding period is longer than one year.

›How do I calculate marketing ROI?

Marketing ROI = (Revenue attributable to campaign − Campaign cost) / Campaign cost × 100%. Use gross profit instead of revenue for a stricter measure.

›How is ROI calculated for real estate?

Include net rental income plus appreciation, minus mortgage interest, taxes, insurance and maintenance. Divide by your total cash invested (down payment + closing costs + rehab).

›Can ROI be negative?

Yes — a negative ROI means the investment lost money. −20% ROI means you got back 80% of what you invested.

›Does ROI account for risk?

No. Two investments can share the same ROI but very different risk. Use Sharpe ratio or risk-adjusted return for that comparison.

›How do taxes affect ROI?

Use after-tax gain for after-tax ROI. Long-term capital gains are taxed at lower rates than short-term in most jurisdictions.

›ROI vs ROAS?

ROAS (Return On Ad Spend) is revenue / ad spend and ignores product cost. ROI is profit / total cost — it's the stricter, more accurate metric.

›How accurate is this roi calculator?

The formulas match the standard textbook definition shown above. Rounding is applied only for display; underlying computation uses full floating-point precision. For regulated finance decisions, always confirm with a qualified professional.

›Can I use this on mobile?

Yes — the roi calculator is fully responsive, and results, charts, and the share button all work on phones and tablets.