ROI Calculator
Calculate return on investment (ROI) from your initial investment and final value, to measure as a percentage how much your money gained or lost and compare different investments against each other.
Results
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ROI = (Final value - Initial investment) / Initial investment × 100
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ROI Calculator
ROI (Return on Investment) is one of the most widely used metrics for comparing the profitability of very different kinds of investments — stocks, a business, a renovation, a training course — because it reduces the result to a single, easy-to-compare percentage. This calculator gives you the ROI, the gain in euros, and the final value of the investment from the figures you enter.
The formula is: ROI = (Final value − Initial investment) / Initial investment × 100. For example, if you invest €2,000 and the final value is €2,500, the ROI is (2,500−2,000)/2,000 × 100 = 25%. A positive ROI means a gain; a negative one means a loss on the invested capital.
ROI alone says nothing about how long it took to generate that gain: a 25% ROI over one month isn't comparable to a 25% ROI over five years, even though the percentage is identical. To compare investments with different time horizons, it's better to annualize the result or use a metric like CAGR (compound annual growth rate).
Another important nuance is that basic ROI doesn't deduct fees, capital gains tax, or the effect of inflation. For a realistic comparison between investments, especially over the long term, it's worth also calculating ROI net of costs and taxes, since these can significantly reduce the actual return an investor experiences.
Preguntas frecuentes
How is ROI calculated?
ROI = (Final value − Initial investment) / Initial investment × 100. A €1,000 investment that ends up worth €1,200 has a 20% ROI.
What's considered a good ROI?
It depends on the asset type and time frame: in the stock market, an annualized ROI of 6-8% over the long term is considered reasonable; for businesses or specific projects, expectations vary much more.
Does ROI account for how long the investment lasted?
Not directly. Two investments with the same ROI but different durations aren't comparable without annualizing the result.
How do I annualize ROI to compare investments of different lengths?
You can approximate it with the CAGR formula: (Final value/Initial investment)^(1/years) − 1, expressed as a percentage.
Does ROI include taxes and fees?
The basic calculation doesn't deduct them. For a realistic result, subtract fees first and calculate the tax on the gain according to your country's rules before finding the net ROI.
Can ROI be negative?
Yes, it happens when the final value is lower than the initial investment, meaning there's a loss.
What's the difference between ROI and annualized return (APR/CAGR)?
ROI measures the total gain over the whole period; APR or CAGR express that same gain on an annualized basis, allowing comparison between investments of different lengths.
Can ROI be used to compare stock market investments with a personal business?
Yes, as long as you annualize the result and keep in mind that the risk and liquidity of each type of investment are very different, something ROI alone doesn't reflect.