ROI Calculator
Work out your return on investment, net profit, and annualized return in seconds. Compare any investment, from property to stocks to a business venture.
Calculate Your Return on Investment
Enter what you put in and what you got back to instantly see your total ROI, net profit, and the equivalent annual return over your holding period.
ROI Calculator
See your total return and its annualized equivalent.
How it Works
Understanding ROI calculations
Total Cost of Investment
We add your initial investment to any additional costs or fees to establish the true total amount you put in.
Net Profit
We subtract your total cost from the final value returned to work out how much profit (or loss) the investment actually made.
Total ROI
Net profit is divided by your total cost and expressed as a percentage, showing your overall return across the whole period.
Annualized ROI
We convert the total return into an equivalent yearly compound rate, making it easy to compare against other investments fairly.
Typical Annual ROI Benchmarks
A general overview of average annual returns seen across different asset classes, for context only.
| Investment Type | Typical Annual ROI | General Characteristics |
|---|---|---|
| Savings Account | 1% – 4% | Very low risk, highly liquid |
| Government Bonds | 3% – 5% | Low risk, fixed income |
| Stock Market (Index Funds) | 7% – 10% | Medium-to-high risk, long-term growth |
| Buy-to-Let Property | 4% – 8% | Medium risk, rental income plus capital growth |
| Small Business / Startup | Highly variable | High risk, potential for high or negative returns |
ROI FAQ
Answers to the most frequently asked questions about calculating and interpreting return on investment.
ROI, or return on investment, measures the profitability of an investment relative to its cost. It is calculated by dividing net profit by the total amount invested and expressing the result as a percentage, making it easy to compare very different types of investments.
Subtract your total investment cost from the final value of the investment to get your net profit. Then divide that net profit by the total investment cost and multiply by 100. This gives you the ROI percentage over the full period you held the investment.
Standard ROI shows your total return over the entire investment period, regardless of how long that period was. Annualized ROI converts that figure into an equivalent yearly rate, which makes it far easier to fairly compare investments held for different lengths of time.
A good ROI depends heavily on the type of investment and the risk involved. Many investors use long-term stock market averages of around 7% to 10% annually as a rough benchmark, but higher-risk investments are generally expected to deliver higher returns to justify the extra risk.