Yes. If your return value is lower than your investment cost, ROI becomes negative and indicates a loss.

Is ROI the same as profit margin?

No. Profit margin compares profit to revenue, while ROI compares profit to the investment cost.

Business • Investing • Performance

ROI Calculator – Return on Investment % + Annualized ROI

Q: How do I calculate ROI percentage?

ROI % is calculated as ((Return Value minus Investment Cost) divided by Investment Cost) multiplied by 100.

Enter your investment cost, return value, and timeframe to calculate ROI percentage and annualized ROI. Useful for ad campaigns, eCommerce products, business projects, and investments.

Tip: Annualized ROI helps you compare returns across different timeframes fairly.

📌 ROI Calculator

Calculate ROI % and annualized ROI using cost, return and timeframe. Great for marketing, startups, freelancers, and investors.

FREE tool • No signup

💱 Currency

💼 Investment Cost *

What you spent or invested (principal / cost).

💰 Return Value *

Total value you received at the end (principal + profit).

⏳ Timeframe *

How long the investment ran.

🗓️ Time Unit

Annualized ROI uses your timeframe converted into years.

🏢 Label (optional)

This label appears in your on-page summary (not stored).

What Is ROI?

ROI (Return on Investment) measures how much profit (or loss) you generated compared to the cost of an investment. It’s commonly used to evaluate marketing campaigns, business projects, products, and investments.

ROI Formula

The ROI formula used in this calculator is: ROI % = ((Return Value − Investment Cost) ÷ Investment Cost) × 100. If ROI is positive you earned a profit, and if it’s negative you lost money.

What Is Annualized ROI?

Annualized ROI converts your return into a yearly rate so you can compare investments with different timeframes. This calculator uses a compound approach: Annualized ROI = ((Return ÷ Cost)^(1/years) − 1) × 100.

When ROI Can Be Misleading

Timeframe matters: a 20% ROI in 2 months is different from 20% in 2 years.
Risk isn’t shown: two investments can have the same ROI with very different risk.
Cash flow timing: ROI doesn’t show when you received money during the period.

ROI Calculator – FAQs

How do I calculate ROI percentage?

ROI % is calculated as ((Return − Cost) ÷ Cost) × 100. Enter your investment cost and return value and the tool calculates it instantly.

What does annualized ROI mean?

Annualized ROI expresses your return as a yearly rate, making it easier to compare investments that ran for different lengths of time.

What if my timeframe is less than 1 year?

The calculator converts your timeframe into years (months ÷ 12, days ÷ 365) and then computes annualized ROI using a compound method.

Can ROI be negative?

Yes. If your return value is less than your investment cost, ROI becomes negative and indicates a loss.

Is this the same as profit margin?

No. Profit margin typically compares profit to revenue. ROI compares profit to the investment cost.