Financial Calculators
ROI Calculator
Calculate net gain or loss, simple ROI and an optional annualized return. Compare up to three mathematical investment scenarios using the same inputs.
Calculate ROI
ROI Calculator
Measure a simple return and optional annualized return, or compare up to three scenarios without treating the result as investment advice.
Return estimate
- Initial Investment
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- Final Value
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- Income
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- Costs
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- Net Gain / Loss
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- Annualized Return
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| Scenario | Initial | Final | Costs | Net Gain | ROI | Annualized |
|---|
Annualized return treats costs as part of the initial outlay and distributions as ending wealth. It is not an IRR for cash flows occurring throughout the period.
This calculator provides mathematical estimates only and does not constitute investment or financial advice.
Your calculation is processed in your browser and is not stored by this tool.
The calculator compares the values entered; it does not predict performance or recommend an investment. Returns are not guaranteed.
How to use the ROI calculator
- 1
Enter the initial investment and ending value.
- 2
Add distributions or other income received.
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Include fees and other costs so the net gain is not overstated.
- 4
Enter a duration in months or years for an annualized result.
- 5
Optionally compare investments A, B and C using consistent assumptions.
ROI formula
The simple return on investment formula is ROI = (net gain ÷ initial investment) × 100. ToolHub calculates net gain as ending value plus income, minus the initial investment and costs. A positive percentage shows a gain relative to the initial amount; a negative percentage shows a loss.
ROI calculation example
Suppose the initial investment is $1,000, the ending value is $1,200, distributions are $50 and fees are $20. Net gain is $230, so simple ROI is 23%. Over two years, the calculator shows an annualized return of about 10.70%.
Simple ROI versus annualized return
Simple ROI measures the total change but ignores how long it took. Annualized return converts growth into a comparable yearly rate using the duration. Two projects can have the same simple ROI while the one reaching it sooner has a higher annualized result. Annualization is unavailable when the duration or required values do not support the calculation.
Comparing investment scenarios
The comparison mode can place up to three results in one table and identify the highest calculated simple ROI. Use the same scope and time basis for a fair comparison. A property, marketing campaign, business project, stock or crypto position can have very different risks, liquidity and tax treatment even when their percentages look similar.
Important limitations
- No cash-flow schedule: the timing of interim income is not modeled.
- No risk measure: volatility, probability of loss and liquidity are excluded.
- Taxes and inflation: include relevant costs manually; inflation is not adjusted.
- Forecasting: the calculator measures entered values and does not predict future returns.
- Advice: the highest calculated ROI is not an investment recommendation.
Related tools
ROI Calculator FAQ
What is the ROI formula?
ROI equals net gain divided by the initial investment, multiplied by 100.
How are fees included?
Fees and costs reduce net gain before ROI is calculated.
What is annualized ROI?
It expresses the entered growth as an equivalent yearly rate over the selected duration.
Can I compare multiple investments?
Yes. Comparison mode displays up to three mathematical scenarios.
Can ROI be negative?
Yes. A negative result means the ending value and income did not cover the initial investment and costs.
Does a higher ROI mean lower risk?
No. This calculator does not measure risk, liquidity, taxes or investment suitability.
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