Is the ROI Calculator free to use?

Yes. The ROI Calculator is completely free, runs entirely in your browser, and requires no account or sign-up. Your inputs never leave your device.

ROI Calculator

Calculate return on investment and annualized return.

Quick answer

Return on investment (ROI) is the net gain divided by the cost: (final value − initial cost) ÷ initial cost × 100. It measures profitability as a percentage but ignores time, so annualized return is more comparable across investments of different lengths.

Investment outcome

Amount invested

Final value

Holding period

yrs

Return on investment

40.0%

Gain

$4,000

Annualized (CAGR)

11.87%

ROI vs. CAGR

ROI is the total percentage gain regardless of time; CAGR spreads it into an equivalent yearly rate. A 40% ROI is excellent over 3 years (11.9% CAGR) and mediocre over 10 (3.4%). Always annualize before comparing investments held for different periods.

Count every cost

Honest ROI includes all cash out: fees, taxes, maintenance, and your time where relevant. Real estate 'doubled my money' claims often omit a decade of property tax, insurance, and repairs that cut the true CAGR by several points.

Frequently asked questions

How does the ROI Calculator work?: Return on investment (ROI) is the net gain divided by the cost: (final value − initial cost) ÷ initial cost × 100. It measures profitability as a percentage but ignores time, so annualized return is more comparable across investments of different lengths.
Is the ROI Calculator free to use?: Yes. The ROI Calculator is completely free, runs entirely in your browser, and requires no account or sign-up. Your inputs never leave your device.

Sources & methodology