ROI Calculator

Work out your net profit, ROI percentage and annualised return on any investment, business project or trade.

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Investment Details
£
£
£
Commission, maintenance, or other costs not already in your initial investment.
Used to calculate your annualised return (CAGR).
ROI Results
Net Profit
£0.00
ROI
0%

total return

Annualised Return
0%

CAGR per year

Total Invested (incl. costs) £0.00
Final Value £0.00
Net Profit / Loss £0.00
Return on Investment (ROI) 0%
Annualised Return (CAGR) 0%
How to Use This Calculator
  1. Enter your initial investment - the amount you originally put in.
  2. Enter the final value - what the investment is worth now, or what you sold it for.
  3. Add any extra costs - commission, fees or other costs not already included above.
  4. Enter your holding period to see your annualised return (CAGR), which lets you fairly compare investments held for different lengths of time.
Frequently Asked Questions

Return on Investment (ROI) is calculated as: ROI = (Final Value - Initial Investment) / Initial Investment × 100. It expresses your net profit or loss as a percentage of what you originally put in, regardless of how long you held the investment.

It depends heavily on the asset class and time period. Over the long run, the US and UK stock markets have historically returned around 7-10% per year on average (before inflation), while savings accounts and bonds typically return less with lower risk. A "good" ROI for a short-term trade or business project may look very different from a good annual return on a diversified portfolio.

ROI measures your total return over the whole holding period, no matter how long that was. CAGR (Compound Annual Growth Rate) spreads that same return evenly across each year, which makes it possible to fairly compare investments held for different lengths of time. A 50% ROI over 5 years is a very different result to a 50% ROI over 6 months.

No. Basic ROI only compares what you put in against what you got out - it does not adjust for risk, volatility, taxes, inflation or fees. If you paid fees or commission, include them in your initial investment figure to get a more accurate net return. For tax on share sales, see our Stock Profit Calculator and Capital Gains Tax Calculator.

ROI compares profit to the amount invested (useful for investments, projects and campaigns). Profit margin compares profit to revenue from sales (useful for pricing products and running a business). Use our Profit Margin Calculator if you are pricing goods or services rather than evaluating an investment.
ROI Basics
  • ROI = (Final Value - Initial Investment) ÷ Initial Investment × 100.
  • ROI doesn't factor in how long you held the investment - CAGR does.
  • Include fees and commission in your initial investment for a true net return.
  • A negative ROI means you made a loss overall.
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