ROI Calculator
Enter what you invested and what you got back. Add the time period to compare investments of different lengths with an annualized ROI.
ROI formula
ROI (%) = (amount returned − amount invested) ÷ amount invested × 100
Annualized ROI = (amount returned ÷ amount invested)^(1 ÷ years) − 1
Example
You spend $10,000 on new equipment and it brings in $13,500 of extra profit over two years. Net profit is $3,500 and ROI is 35%. Annualized, that is about 16.2% per year.
Why annualized ROI matters
A 35% return over two years is not the same as 35% in one year. Annualizing lets you compare a marketing campaign, an equipment purchase and an investment fairly.
Using ROI for marketing
For a campaign, enter your ad spend as the amount invested and the gross profit the campaign brought in (revenue minus product costs, not total revenue) as the amount returned. Using revenue instead of profit makes ROI look better than it really is.
Frequently asked questions
How do you calculate ROI?
Subtract the amount invested from the amount returned, divide by the amount invested, and multiply by 100.
What is a good ROI?
It depends on risk and time. Compare it with alternatives such as a savings account, an index fund, or paying down debt.
What is annualized ROI?
The average yearly growth rate that turns your investment into the amount returned over the period — useful for comparing investments of different lengths.