# ROI Calculator

> Calculate total and annualized return on investment.

Page: https://freecalculator.tech/tools/roi-calculator

## How do I calculate return on investment?

Return on investment is the gain minus the cost, divided by the cost, expressed as a percentage.

## Formula

ROI = (final value − initial cost) ÷ initial cost × 100. Annualized ROI = (final ÷ initial)^(1 ÷ years) − 1.

- ROI = (final value − initial cost) ÷ initial cost × 100. Annualized ROI = (final ÷ initial)^(1 ÷ years) − 1.
- Inputs used: Initial cost, Final value, Holding period (optional).
- Edge handling: Initial cost is required.; Initial cost cannot be negative.; Initial cost must be no more than 1000000000000.; Final value is required.; Final value cannot be negative..

## Inputs

- Initial cost
- Final value
- Holding period (optional)

## Worked example: $10,000 grows to $12,500

The total ROI is 25%.
1. Start with Initial cost: 10000, Final value: 12500, Holding period (optional): 1.
2. Apply the method: ROI = (final value − initial cost) ÷ initial cost × 100. Annualized ROI = (final ÷ initial)^(1 ÷ years) − 1.
3. The total ROI is 25%.

## Common questions

### How do I calculate return on investment?

Return on investment is the gain minus the cost, divided by the cost, expressed as a percentage. Check the formula, example, and limitations on this page before using the result for a real finance decision.

### Can ROI be negative?

Yes. A final value below initial cost produces a loss.

### Why annualize ROI?

Annualization helps compare returns held for different lengths of time. Check the formula, example, and limitations on this page before using the result for a real finance decision.

### How do I use the ROI Calculator?

Enter the required values for Initial cost, Final value, Holding period (optional). The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.

### What formula does the ROI Calculator use?

ROI = (final value − initial cost) ÷ initial cost × 100. Annualized ROI = (final ÷ initial)^(1 ÷ years) − 1. The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone.

### Can the ROI Calculator be used for exact decisions?

Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.

## Limitations and assumptions

- Results are estimates for informational purposes only and are not financial advice.
- Inputs outside the supported range are rejected rather than forced into a result.
- The result depends on the values you enter for this roi calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.

## Cite this page

- APA: Free Calculator. (n.d.). ROI Calculator. https://freecalculator.tech/tools/roi-calculator
- MLA: "ROI Calculator." Free Calculator, https://freecalculator.tech/tools/roi-calculator.
- Link: ROI Calculator — Free Calculator, https://freecalculator.tech/tools/roi-calculator