# ROI Calculator – Return on Investment

URL: https://speedycalculator.com/calculators/finance/roi/
Last updated: 2026-10-25

> The ROI calculator works out the return on an investment – the gain as a percentage of what you put in – including periodic contributions, and the annualized ROI between two dates.

## Inputs

- Initial invested amount
- Periodic contribution
- Contribution frequency
- Returned amount
- Investment period (years, months)

## Results

- Total invested
- Investment gain
- ROI
- Annualized ROI

## Formula

```
ROI = (amount returned − total invested) ÷ total invested × 100
Annualized ROI = (amount returned ÷ total invested)^(1 ÷ years) − 1
```

## Explanation

ROI is the simplest profitability measure and works for anything – stocks, property, marketing or equipment. It ignores time, so annualized ROI is better for comparing investments held for different lengths.

### How to use the ROI Calculator – Return on Investment

- **Initial invested amount**
- **Periodic contribution**
- **Contribution frequency**
- **Returned amount**
- **Investment period**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the initial amount, any regular contributions, the amount returned and the investment period (or dates).

### Tips

- Use the nominal annual rate and pick the compounding frequency your bank or broker states.
- Small differences in return or fees compound into large differences over decades.
- Run the calculation with a cautious, a central and an optimistic return to see the range of outcomes.
- Past returns do not guarantee future returns – nothing here is investment advice.

### Common mistakes to avoid

- Comparing an APR with an APY or effective rate.
- Ignoring inflation, taxes and fees when judging a real return.
- Entering a percentage as a decimal (5 instead of 0.05 is correct here).

### Inputs explained

FieldWhat to enterInitial invested amountAmount in your currencyPeriodic contributionAmount in your currencyContribution frequencyChoose one: Monthly, Bi-weekly, Weekly, Quarterly …Returned amountAmount in your currencyInvestment periodUnits: years, months

### What each result means

- **Investment gain** = [Returned amount] - [Total invested]
- **ROI** = [Investment gain]÷[Total invested]×100
- **Annualized ROI** = (([Returned amount]÷[Total invested])^(1÷[Investment period]) - 1)×100

### Example values

How the main result changes when **Initial invested amount** changes and everything else stays at the example values above:

Initial invested amountROI (%)5,0002007,50010010,0005012,5002015,000020,000-25

## Worked example

Inputs — Initial invested amount: $10,000; Periodic contribution: $0; Contribution frequency: Never; Returned amount: $15,000; Investment period: 3 years.

Results — Total invested = $10,000.00; Investment gain = $5,000.00; **ROI = 50 %**; Annualized ROI = 14.47 %.

## FAQ

**How do I calculate ROI?**
(Gain ÷ cost) × 100.

**What is a good ROI?**
Above what you could earn elsewhere at similar risk; stock markets average about 7–10% a year.

**Why annualize ROI?**
A 50% return over 10 years is far worse than 50% over 2 years.

**What formula does the ROI Calculator – Return on Investment use?**
ROI = (amount returned − total invested) ÷ total invested × 100.