Free ROI Calculator
Use this free ROI calculator to measure the payoff of any project, ad campaign, or investment. See profit, ROI percentage, and annualized ROI in seconds so you know where your money works hardest.
No sign-up required. 100% free ROI calculator.
Try the ROI Calculator
Enter your initial investment, ending value, and time held to see your total ROI and annualized ROI. Compare ideas side by side before you commit more money.
ROI Calculator
Inputs
Results
Final Amount
$15,000.00
Net Profit
$5,000.00
Total ROI
50%
Annualized ROI
22.47%
Want to hit a specific ROI?
How this works
Basic ROI
ROI measures how much you earned relative to the capital that was working on average.
- Net profit = final value − initial investment − mid-period contribution
- Average invested capital = initial investment + (mid-period contribution ÷ 2)
- ROI = net profit ÷ average invested capital
Annualized ROI
We convert your time input into years so a 6-month project and a 3-year project line up fairly.
- Annualized ROI = (1 + ROI)1 ÷ years − 1
Mid-period cash-flow
Use a positive number for extra capital added halfway through the period. Withdrawals aren’t supported because they can produce misleading percentages.
Target ROI
“Want to hit a specific ROI?” runs the same ROI formula in reverse—keeping your initial investment and midpoint contribution—to solve for the final value you’d need.
Learn more: ROI vs Annualized ROI—How to Read Them & Boost Your Investment Strategy
How to Use the ROI Calculator (Step-by-Step)
ROI (Return on Investment) shows how much profit you earned compared to what you spent. This ROI calculator makes it easy to plug in your numbers and instantly see whether something is worth continuing, fixing, or shutting down.
- Enter your initial investment. Include everything you spent: cash, fees, tools, ad spend, or labor costs you want to track.
- Add your ending value or total return. This might be sales revenue from a campaign, profit from a flip, or the current value of an investment.
- Set how long you held the investment. Use months or years so the tool can calculate annualized ROI and compare a short test vs. a long project fairly.
- Include mid-period cash flows (optional). Add any extra contributions or withdrawals to get a more realistic ROI.
- Review your ROI and annualized ROI. Use these numbers to decide whether to scale, tweak, or stop the idea.
Annualized ROI is especially useful when you're comparing projects with different time frames—like a 3-month ad test vs. a 2-year real estate deal.
Once you know your ROI, you can also explore our Break-Even Calculator and Freelancer Rate Calculator to price services and understand your path to profit.
Example ROI Calculations (Marketing, Business, and Investing)
1. Marketing Campaign ROI
You spend $1,000 on ads and generate $3,000 in sales.
- Initial investment: $1,000
- Ending value (revenue): $3,000
- Profit: $2,000
ROI = (2,000 ÷ 1,000) = 200% ROI. You can now ask: "Should I scale this campaign or test a new one first?"
2. Small Business Equipment ROI
You buy a tool for $2,500 that helps you produce more work, leading to $5,000 in extra profit over a year.
- Initial investment: $2,500
- Extra profit: $5,000
ROI = (5,000 ÷ 2,500) = 200% ROI over one year.
3. Simple Investment ROI
You invest $10,000 and it grows to $11,500 in one year.
- Initial investment: $10,000
- Ending value: $11,500
- Profit: $1,500
ROI = (1,500 ÷ 10,000) = 15% ROI. Compare that to other options (like index funds) to see if the risk is worth it.
Popular Ways People Use It
- Marketing teams comparing campaigns by ROI and payback speed.
- Founders checking if a prototype or launch beat their hurdle rate.
- Investors benchmarking flips, rentals, or side bets vs. a basic index fund.
- Side hustlers and DIYers validating whether a tool, course, or upgrade paid for itself.
ROI Calculator FAQ
What is ROI and how is it calculated?
ROI (Return on Investment) measures how much profit you earn compared to what you invested. The basic formula is: (Gain from Investment − Cost of Investment) ÷ Cost of Investment. This ROI calculator uses that formula to show your ROI as both a percentage and a dollar amount.
What is the difference between ROI and annualized ROI?
ROI looks at your total return over the whole period. Annualized ROI adjusts that return to a yearly rate so you can compare short tests and long projects fairly. For example, a 20% return over 3 months will show a much higher annualized ROI than 20% over 3 years.
What is a good ROI for a business or project?
A "good" ROI depends on your industry, risk level, and time frame. Many business owners look for returns that beat basic savings or index funds over the same period. Use this ROI calculator to compare different ideas and move more money into the ones that consistently win.
Can I use this ROI calculator for side hustles or online businesses?
Yes. This tool works for almost any type of investment: ad campaigns, side hustles, digital products, software tools, real estate, and more. Just enter your total costs and total returns to see whether the idea is worth scaling.
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