ROI Calculator · Practical guide
How to Calculate ROI Percentage
Subtract what you paid from what you got back, divide by what you paid, multiply by 100 — that is your ROI.
At a glance
The ROI Formula
ROI = (Final Value − Initial Investment) ÷ Initial Investment × 100%. If you invested $10,000 and it grew to $15,000, the gain is $5,000, so ROI = $5,000 ÷ $10,000 × 100% = 50%. The result expresses your profit as a percentage of the money you put in, which is what makes investments of different sizes directly comparable.
Interactive tool
ROI Calculator
Enter your own values, then compare the result with the examples below.
ROI Analysis
Worked Examples
| Invested | Final Value | Profit / Loss | ROI |
|---|---|---|---|
| $10,000 | $15,000 | +$5,000 | +50% |
| $5,000 | $6,200 | +$1,200 | +24% |
| $25,000 | $25,000 | $0 | 0% |
| $10,000 | $8,000 | −$2,000 | −20% |
Negative ROI
ROI goes negative when the final value is below what you invested. Selling a $10,000 position for $8,000 is an ROI of −20%. A result of −100% means a total loss. Negative returns are still useful information: comparing a −5% ROI against a market index that dropped 15% in the same period tells you the investment actually outperformed on a relative basis.
The Multiplier and Annualized Views
Two related figures add context. The multiplier is final ÷ initial: $15,000 ÷ $10,000 = 1.50x, the way venture investors describe returns. And if you know how long you held the investment, annualized ROI converts the total into a per-year rate — 50% over 5 years is about 8.45% per year. The calculator above shows all four numbers from just your initial and final values.
Frequently Asked Questions
What is the difference between ROI and profit?
Profit is the dollar amount gained or lost; ROI is that gain expressed as a percentage of the investment. A $5,000 profit is a 50% ROI on $10,000 but only 5% on $100,000.
Should I include dividends and fees in the calculation?
Yes, for an accurate net ROI. Add dividends and distributions received to the final value, and subtract commissions, management fees, and other costs you paid along the way.
Is ROI the same as interest rate?
No. An interest rate is a contracted annual percentage, while ROI measures the actual total gain or loss over the whole holding period. Annualized ROI bridges the two by converting the total return into a yearly rate.
Can ROI exceed 100%?
Yes. Any final value more than double your investment gives an ROI above 100%. Turning $10,000 into $25,000 is a 150% ROI, or a 2.5x multiplier.