Business · investing
ROI Calculator
By the Dailycaltor team · formula-verified · last updated July 2026
Was it worth it? Get the return in seconds.
Details
Formula
ROI = (returned − invested) ÷ invested × 100. Annualized return = (returned ÷ invested)1/years − 1, which lets you compare investments held for different lengths of time.
Worked examples
- Invest $1,000, get back $1,500 → 50% ROI; over 2 years that is ~22.5% per year.
- Invest $10,000, return $11,000 in 5 years → 10% ROI but only ~1.9%/yr — weak once time is counted.
- A 50% ROI in 6 months annualizes to about 125%/yr.
Common mistakes
- Ignoring time — 50% over 10 years is very different from 50% in one year.
- Leaving out costs (fees, taxes, your hours) from the invested amount.
- Comparing ROI of different-risk investments as if risk were equal.
Last updated: July 2026. Educational estimates only.
Questions
How do I calculate ROI?
Subtract what you put in from what you got back, divide by what you put in, multiply by 100.
What is a good ROI?
Context matters: broad stock markets have averaged ~7–10%/yr long-term; business projects often target higher for their risk.
Why annualize returns?
It converts any holding period into a per-year rate so different investments compare fairly.
Does ROI include time value of money?
Basic ROI does not; the annualized figure here accounts for the holding period.
Can ROI be negative?
Yes — getting back less than you invested produces a negative ROI (a loss).
Is this before or after tax?
Enter after-tax amounts to see your true personal return.