Utilz
ROI Calculator
Calculate your return on investment instantly
Want to learn more? Read our guide: ROI & Interest Rate Fundamentals
Why Use This Tool?
- Compare profitability of different investments objectively
- Calculate annualized returns for fair comparison across different time periods
- No signup required — instant results in your browser
Calculation Formula
ROI = (Gain - Cost) / Cost × 100%. Annualized ROI = ((1 + ROI)^(1/years) - 1) × 100%.
How to Use
- Enter your initial investment amount
- Enter the final value or total returns
- Enter the investment period in years
- View your ROI%, annualized ROI, and net profit
FAQ
How is ROI calculated?
ROI is calculated as (Net Profit / Investment Cost) × 100. For example, if you invested $10,000 and received $12,000 back, your ROI is (2,000/10,000) × 100 = 20%.
What is annualized ROI?
Annualized ROI adjusts the return to a per-year basis using the formula: ((1 + ROI)^(1/years) - 1) × 100. This allows fair comparison between investments of different durations.
What is a good ROI?
A "good" ROI depends on the investment type and risk level. Stock market averages around 7-10% annually. Real estate typically yields 8-12%. Higher returns usually come with higher risk.
Can ROI be negative?
Yes. A negative ROI means you lost money on the investment. For example, if you invested $10,000 and the final value is $8,000, the ROI is -20%.
What is a good ROI?
A "good" ROI varies by context. The S&P 500 has historically returned about 10% annually. Real estate typically returns 8-12%. Any ROI above the inflation rate represents real growth.