ROI Calculator

How it works

1. Enter initial investment. 2. Final value. 3. Period in years. 4. Calculate.

When to use it

The ROI calculator is essential for:

• Financial investments: evaluate returns on stocks, bonds, funds or cryptocurrencies.
• Real estate: calculate ROI on property investment considering purchase, renovation and rent.
• Marketing: measure return on advertising campaigns (ROAS) to optimize budget.
• Business plans: demonstrate expected profitability of a new project to investors.
• Investment comparison: compare annualized ROI of different opportunities to choose the best one.

Advantages

Calculates ROI and annualized ROI. Shows net profit and profitability indicator.

Benefits vs alternatives

Advantages of our calculator:

• Annualized ROI: calculates annualized ROI to compare investments of different durations.
• Net profit: shows net profit in absolute value besides the percentage.
• Visual indicator: green for profit, red for loss, for immediate understanding.
• Free and impartial: we don't sell financial products, calculations are neutral.

Common mistakes to avoid

1. Not considering time: a 100% ROI in 1 year is excellent, the same ROI in 20 years is mediocre. Always use annualized ROI for comparisons.
2. Ignoring costs: ROI must include all costs: commissions, taxes, management fees. A gross ROI is misleading.
3. Past ROI ≠ future ROI: past performance does not guarantee future results. This is a common mistake in investment evaluation.
4. Confusing ROI and yield: ROI measures the return relative to initial cost, not the compound annual growth rate (CAGR).

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