ROI Calculator (Return on Investment)

Compute simple ROI %, net profit, return multiple (MOIC), and annualized ROI over your exact holding period.

Total Return on Investment (ROI)
54%
Annualized return (CAGR): 13.13% per year over 3.5 yrs
Net Profit / Gain USD 13,500.00
Annualized ROI (CAGR) 13.13%
Return Multiple (MOIC) 1.54×
Holding Period 3.5 yrs
Inputs
Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
USD ($)
Total initial cost basis including fees.
USD ($)
Total proceeds or current market value.
years
Length of time capital was deployed (in years).
Results & Graph
Total Return on Investment (ROI)
54%
Annualized return (CAGR): 13.13% per year over 3.5 yrs
Net Profit / Gain
USD 13,500.00
Annualized ROI (CAGR)
13.13%
Return Multiple (MOIC)
1.54×
Holding Period
3.5 yrs

Capital Invested vs. Final Return Value

Comparison of initial capital outlay and ending return
Graph 1 • Compound Annual Growth Trajectory Curve Tracks compounded value from initial capital to ending value
0 135.0k 270.0k Yr 0: 100,000 100.0k Yr 0 Yr 1.3: 126,901 126.9k Yr 1.3 Yr 2.5: 158,114 158.1k Yr 2.5 Yr 3.8: 200,648 200.6k Yr 3.8 Yr 5: 250,000 250.0k Yr 5
Graph 2 • Initial Principal vs. Net Investment Gain Ring Share of ending portfolio value
ENDING VALUE 250.0k Initial Invested Capital 100.0k (40.0%) Net Capital Gain 150.0k (60.0%)
Graph 3 • Required Financial Independence (FIRE) Corpus by SWR (4.0% to 3.0%) 25× to 33.3× annual living expenses
4.0% Standard Trinity Rule (25× Annual Expenses) 1.00M 3.5% Conservative Early FIRE (28.6× Expenses) 1.14M 3.0% Ultra-Safe Perpetual FIRE (33.3× Expenses) 1.33M
Summary: Initial cost is USD 25,000.00, final value is USD 38,500.00, and net gain is USD 13,500.00.
Summary: An investment of USD 25,000.00 returning USD 38,500.00 after 3.5 years produces a net gain of USD 13,500.00, representing a 54% total ROI and a 13.13% compound annual growth rate.
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Formula & Mathematical Methodology: Total ROI and Annualized ROI Formulas

ROI = Final − InitialInitial × 100%,   Annualized ROI = [(FinalInitial)1n − 1] × 100%
ROI (%) = [ (Final − Initial) / Initial ] × 100; Annualized ROI = [ (Final / Initial)^(1 / Years) − 1 ] × 100
  • Initial: Total capital invested at start
  • Final: Total ending value returned
  • Years: Holding period in years

Rounding: Percentages and multiples round to 2 decimal places.

Worked Example: $25,000 Investment Growing to $38,500 Over 3.5 Years

An investor puts $25,000 into a project and exits after 3.5 years with $38,500.

  1. Net profit = $38,500 − $25,000 = $13,500.
  2. Total ROI = ($13,500 ÷ $25,000) × 100 = 54.00%.
  3. Annualized ROI = [(38,500 ÷ 25,000)^(1 ÷ 3.5) − 1] × 100 = 13.12% per year.
Result: Total ROI is 54.00% ($13,500 net profit) and annualized ROI is 13.12%/year.

Frequently Asked Questions

Why is Annualized ROI lower than Total ROI divided by years?

Because investment returns compound each year. A 54% gain over 3.5 years requires 13.12% compounded annually, whereas simple division (54% ÷ 3.5) would overstate the annual rate at 15.43%.

Finance & Investing · Investment Performance & Business Returns

ROI Calculator (Return on Investment): inputs, method, and how to read the result

Compute simple ROI %, net profit, return multiple (MOIC), and annualized ROI over your exact holding period.

Choose inputs for the case you are checking

The defaults are illustrative. Replace them with values for your case and keep the units shown beside each field.

  • Display Currency: Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
  • Initial Amount Invested: Total initial cost basis including fees.
  • Final Value / Amount Returned: Total proceeds or current market value.
  • Holding Period: Length of time capital was deployed (in years).

What the calculation includes

With the default values shown, Total Return on Investment (ROI) is 54%. The calculation follows Total ROI and Annualized ROI Formulas; the formula and variable definitions above show how the inputs combine.

One-input check: With the other defaults held constant, changing Initial Amount Invested from 25,000 USD ($) to 27,500 USD ($) changes Total Return on Investment (ROI) from 54% to 40%. This is a comparison inside the calculator's stated model, not a prediction.

Where to use caution

  • Assumes a single initial cash outflow and a single ending value without intermediate cash distributions.
  • Simple ROI ignores time unless paired with the Annualized ROI metric shown alongside it.

Scope: Global Check the assumptions and limitations against your situation before relying on the estimate.

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