How the ROI Calculator works
Calculate return on investment. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this ROI calculator to estimate return on investment after fees or extra costs. It is helpful for comparing investment outcomes, projects, side businesses or any situation where money is put in and value comes back out.
Formula
ROI = (final value - initial investment - costs) / initial investment x 100
- Initial investment is the starting amount committed.
- Final value is the ending value or proceeds.
- Costs reduce the net gain before calculating ROI.
Worked example
For a $10,000 investment that grows to $13,500 with $250 in costs, the calculator estimates a net gain of $3,250 and ROI of 32.5%.
Common mistakes
- Ignoring fees, taxes or transaction costs.
- Comparing ROI over different time periods without annualizing.
- Treating a high ROI as low risk.
FAQs
Is ROI annualized?
No. This calculator shows total ROI over the full period.
Should costs be included?
Yes. Costs reduce the real return and can change comparisons.
Can ROI be negative?
Yes. If the final value is lower than the initial investment plus costs, ROI is negative.