ROI Calculator
Calculate return on investment (ROI), annualised return, and payback period for any investment or business decision.
Total value received (or expected) from the investment
In years (use decimals e.g. 0.5 for 6 months)
Any additional costs over the holding period
How to Use
1. Enter your initial investment (upfront cost) 2. Enter the final value or total return received 3. Enter the time period in years 4. Add any ongoing costs incurred during the periodThe annualised return lets you compare investments of different durations on an equal basis.
Formula
ROI = (Net Profit ÷ Total Cost) × 100 | Annualised = (Final/Cost)^(1/Years) − 1Frequently Asked Questions
What is a good ROI?
It depends on the asset class and risk. The stock market averages ~10% annualised (7% real). Property varies. Business investments of 15–30%+ are generally considered strong.
What's the difference between ROI and annualised return?
ROI is the total return over the whole period. Annualised return (CAGR) adjusts for time, so you can compare a 3-year investment to a 1-year investment fairly.
Should I include inflation?
For a real return, subtract inflation from your annualised return. At 3% inflation, a 10% nominal return is approximately 7% in real purchasing power.
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