ROI Calculator

1. Enter Initial Investment — the total amount you invested (cost of the project, purchase price, ad spend, etc.).
2. Enter Net Profit — the profit or return earned after subtracting costs. Use a negative number for a loss.
3. Enter Time Period (optional) — the duration in years. This unlocks Annualized ROI and Payback Period.
4. Click Calculate — results appear instantly below.
5. Copy or Reset — copy the result summary or clear all fields to start over.

ROI (Return on Investment) is one of the most widely used performance metrics in business and finance. It measures how much profit you earned relative to the cost of the investment, expressed as a percentage. A positive ROI means the investment was profitable; a negative ROI means it resulted in a loss. ROI is used to compare the efficiency of different investments, evaluate marketing campaigns, assess business projects, and more.

Simple ROI does not account for how long an investment lasted. A 50% ROI over 10 years is very different from a 50% ROI over 1 year. Annualized ROI (also called CAGR — Compound Annual Growth Rate) normalizes the return to a yearly rate, making it easy to compare investments with different time horizons. Always use annualized ROI when comparing investments of different durations.

ROI calculators are used by a wide range of professionals: marketers measure ad campaign returns; business owners evaluate new projects or equipment; investors assess stock, real estate, or startup returns; freelancers and agencies demonstrate value to clients; and finance teams justify budget decisions. Any decision involving cost and expected return benefits from an ROI calculation.

ROI is a simple and powerful metric, but it has limitations. It does not account for risk, inflation, taxes, or the time value of money (unless annualized). It also relies on accurate profit figures, which can be difficult to estimate in advance. For major financial decisions, consider using ROI alongside other metrics such as NPV (Net Present Value) or IRR (Internal Rate of Return), and consult a financial advisor.