How to use the ROI calculator
Enter the initial amount invested and the ending value or total value received. Use amounts measured on the same basis and in the same currency. The calculator displays the net gain and simple return on investment as a percentage.
ROI formula
ROI = (Ending value − Initial investment) ÷ Initial investment × 100
The difference between ending value and initial investment is the net gain or loss used in this calculation. Dividing that amount by the initial investment shows the return relative to the original amount.
Example: calculate a 50% ROI
If an investment of $1,000 has an ending value of $1,500, the gain is $500. Divide $500 by $1,000 and multiply by 100 to get a 50% simple ROI. If the ending value is below the initial investment, the result is negative.
Simple ROI vs. annualized return
This calculator reports a simple, total-period ROI. It does not adjust for how long the investment was held. A 20% return over six months is different from a 20% return over five years. Comparing investments held for different periods may require an annualized return calculation.
Costs and limitations to consider
For a useful estimate, include relevant costs in the initial investment or adjust the ending value for fees, taxes, and other expenses as appropriate. This simple formula does not account for cash-flow timing, financing costs, inflation, or risk. It is a basic comparison measure, not a forecast of future performance.
Frequently asked questions
Can ROI be negative?
Yes. If the ending value is less than the initial investment, the calculation shows a negative return.
Is ROI the same as ROAS?
No. ROI evaluates gain relative to investment cost, while ROAS compares advertising-attributed revenue with advertising spend. See the ROAS calculator for campaign measurement.
Related calculators
- ROAS Calculator – measure revenue relative to ad spend.
- Profit Margin Calculator – calculate gross margin on a sale.
- Ecommerce Profit Calculator – estimate per-order ecommerce profit.