ROI Calculator
Calculate Return on Investment, annualised ROI, and net profit from any investment or project.
Results are for general guidance only — not professional advice. Learn more.
How to use this tool
Enter your initial investment amount, the final value (or total return received), and the time period in months. The calculator will give you:
- Net Profit: Final value minus initial investment.
- ROI %: Net profit as a percentage of the initial investment.
- Annualised ROI: The equivalent annual return rate, accounting for compounding.
- Total Return Multiple: How many times your initial investment you received back (e.g. 2.4×).
This tool works for any investment type — stocks, property, marketing campaigns, or business projects.
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Frequently asked questions
What is ROI?
Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment. It expresses the net gain or loss relative to the initial cost as a percentage, making it easy to compare different investments on equal footing.
How is ROI calculated?
ROI is calculated as: ROI (%) = ((Final Value - Initial Investment) / Initial Investment) × 100. For example, if you invest £10,000 and it grows to £14,000, your net profit is £4,000 and your ROI is 40%.
What is a good ROI?
What counts as a good ROI depends on the asset class, risk level, and time horizon. Stock markets historically return around 7–10% per year. Startups and venture investments typically target 10× or more over 5–7 years to compensate for risk. Marketing ROI benchmarks vary by channel, but 5:1 (500% ROI) is often cited as a good baseline.
What is the difference between ROI and annualised ROI?
Simple ROI shows total return regardless of how long it took. Annualised ROI normalises the return to a per-year rate, allowing fair comparison between investments held for different durations. A 100% ROI over 2 years is an annualised ROI of 41.4%, not 50%, because of compounding.