ROI Calculator
Calculate simple return on investment, profit or loss, and ROI percentage from an initial investment and total return. Calculations stay in your browser.
Calculator
Results
Estimate scope
This simple ROI is not annualized and does not automatically include taxes, fees, inflation, or the time value of money.
How it works
What return on investment measures
ROI compares an investment's profit or loss with its initial cost. A positive result indicates a profit, a negative result indicates a loss, and zero indicates break-even.
ROI formula
Profit or loss equals total return minus initial investment. ROI percentage equals that profit or loss divided by initial investment, multiplied by 100. Because the initial investment is the denominator, it must be greater than zero.
Total return is not the same as profit
Total return is the full final value received, including original capital when it is recovered. Profit is only the amount above the initial investment. Entering profit as total return would understate the result.
Interpreting the percentage
ROI can exceed 100% when profit is greater than the initial investment. It can fall as low as -100% when nothing is returned. This simple ROI covers the period represented by the inputs and is not annualized. A 30% ROI means profit equal to 30% of the initial investment, while a -30% ROI means a loss equal to 30% of that investment.
Example calculation
Illustrative ROI example, separate from your calculation:
- Initial investment
- $1,000.00
- Total return
- $1,300.00
- Profit
- $300.00
- ROI
- 30%
The profit is $1,300.00 - $1,000.00 = $300.00. Dividing that profit by $1,000.00 produces a 30% ROI.
Frequently asked questions
What is ROI?
Return on investment measures profit or loss relative to the amount initially invested. It provides a percentage for comparing an investment's result with its starting cost.
How is ROI calculated?
Subtract the initial investment from total return, divide that profit or loss by the initial investment, and multiply by 100.
What should I enter as total return?
Enter the final value received from the investment, including recovered original capital. Do not enter only the profit.
What does a negative ROI mean?
A negative ROI means the total return is less than the initial investment, so the investment produced a loss.
Can ROI be greater than 100%?
Yes. An ROI above 100% means the profit alone exceeded the original investment. For example, investing $100 and receiving $350 produces 250% ROI.
Why must the initial investment be greater than zero?
Initial investment is the denominator in the ROI formula. Dividing by zero is undefined, so a percentage cannot be calculated from a zero investment.
Is this ROI annualized?
No. This calculator reports simple ROI for the full period represented by your inputs. It does not adjust results to a yearly rate.
Does ROI account for fees, taxes, inflation, or time?
Only if those amounts are already reflected in the values you enter. Simple ROI does not separately model fees, taxes, inflation, risk, or the time value of money.