ROI (Return on Investment) Calculator 2026
Calculate ROI, annualized return, and investment profit. Evaluate stock, real estate, and business investments.
ROI (Return on Investment) Calculator 2026
Introduction
ROI (Return on Investment) measures how much profit you made relative to what you invested. It's the universal metric for comparing investments.
Formula: ROI = (Gain - Cost) / Cost × 100
Example Calculations
Example 1: Stock Investment
- Bought: $5,000
- Sold: $6,500
- ROI: ($6,500 - $5,000) / $5,000 × 100 = 30%
Example 2: Real Estate
- Purchase: $300,000
- Expenses: $50,000 (repairs, holding costs)
- Sale Price: $420,000
- ROI: ($420,000 - $350,000) / $350,000 × 100 = 20%
Annualized ROI
To compare investments held for different timeframes, annualize the ROI.
Formula: Annualized ROI = [(1 + ROI)^(1/Years)] - 1 × 100
Example: 30% ROI over 3 years → Annualized = 9.1% per year
What's a Good ROI?
| Investment | Typical ROI |
|---|---|
| S\u0026P 500 (long-term) | 10% annually |
| Real Estate Rental | 8-12% annually |
| High-Yield Savings | 1-5% annually |
| Business | Highly variable (negative to 100%+) |
FAQ
Q: Does ROI account for risk? A: No. A 20% ROI on a volatile stock is riskier than 8% on a stable bond. Consider risk-adjusted returns.
Q: Should I include dividends in ROI? A: Yes. Total return = Price gain + Income (dividends or rent).
Related Tools
- Investment Return Calculator: /calculator/05-investment-return-calculator
Conclusion
ROI is your report card for every financial decision. Use this calculator to ensure your money is working as hard as it should.
Key Takeaways
- Diversify your portfolio across asset classes to manage risk effectively
- Understand the impact of fees and expense ratios on long-term returns
- Stay consistent with your investment strategy regardless of market volatility
How to Use This Calculator
- Enter your financial details in the fields above
- Adjust parameters to match your specific situation
- Review the calculated results and projections
- Compare different scenarios to find the optimal strategy
Tips for Better Results
- Use realistic estimates based on current market conditions
- Update your calculations regularly as your situation changes
- Consider consulting a financial advisor for complex decisions
- Remember that calculator results are estimates, not guarantees