ROI Calculator
Return on investment (%) from cost and gain.
How it works
ROI = (gain − cost) ÷ cost × 100%
ROI measures relative return: positive = profit, negative = loss. It ignores time, so use CAGR to compare across periods.
FAQ
Is ROI the same as annualized return?
No. ROI ignores time; the same 20% over 1 vs 5 years differs greatly annually. Use CAGR for cross-period comparison.
Worked example
Invest 50,000, receive 65,000: ROI = (65000 − 50000) ÷ 50000 = 30%.
If that took 3 years, the annualised return is (1.3)^(1/3) − 1 ≈ 9.1%; the same 30% over 1 year is 30% annualised.
Notes and limitations
ROI ignores time, so it cannot compare projects of different durations — use CAGR for that. It also usually excludes taxes and opportunity cost; including them can reverse the conclusion.