Boneyard Tools

ROI Calculator

Work out the return on any investment. Enter what you put in and what it is worth now to see your ROI percentage and net profit, plus an annualized return if you add a holding period.

How to use the ROI calculator

  1. Enter your initial investment (the cost or amount you put in).
  2. Enter the final value or the total amount returned.
  3. Optionally add the holding period in years to see the annualized return.

Examples

A stock that grew from $1,000 to $1,500

Cost 1000, final value 1500
Net return $500, ROI 50%

Frequently asked questions

What is ROI?

Return on investment measures how much you gained or lost relative to what you put in. The formula is (final value minus cost) divided by cost, expressed as a percentage.

What is the difference between ROI and annualized return?

ROI is the total return over the whole holding period. Annualized return (CAGR) restates that as an equivalent yearly rate, so you can fairly compare investments held for different lengths of time.

How do I interpret a negative ROI?

A negative ROI means the investment is worth less than you paid. An ROI of -20 percent, for example, means you have lost a fifth of the original amount.

What are the limitations of ROI?

Plain ROI ignores how long you held the investment, and it does not account for taxes, fees, inflation or risk. Use the annualized figure for time, and treat ROI as one input rather than the whole picture.

Does this calculator store my numbers?

No. Everything runs in your browser. The figures you type are never sent to a server or saved.

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