The ROI calculator measures the monetary gain or loss and percentage return between an investment's cost and final value. Additional costs can be included so the calculation better reflects the total amount committed.
How to use this calculator
Enter the initial investment, final value, and any additional acquisition or selling costs you want included. The total invested basis is initial investment plus additional costs. Net return is final value minus that basis.
Formula & calculation method
ROI = (final value − initial investment − additional costs) / (initial investment + additional costs) × 100ROI compares net return with the total invested basis. A positive result indicates a gain and a negative result a loss. Unlike annualized return, basic ROI does not account for how long the investment was held.
Worked example
If you invest 10,000, spend another 500 in costs, and later receive 12,500, the net return is 2,000 and ROI is calculated against 10,500 rather than only the purchase amount.
Why this is useful
The calculator provides a fast, standardized comparison metric and shows both currency and percentage results. Including costs helps avoid overstating performance when expenses materially affect the investment.
Limitations to keep in mind
ROI alone ignores time, cash-flow timing, risk, taxes not entered as costs, and opportunity cost. Investments with the same ROI can have very different annual performance if their holding periods differ.
Frequently asked questions
What is the difference between ROI and annualized return?
ROI measures total return over the whole holding period. Annualized return converts performance into a per-year rate and requires the holding duration.
Can ROI be negative?
Yes. A final value below the total invested basis produces a negative net return and negative ROI.
Which costs should I include?
Include costs directly attributable to acquiring, holding, or selling the investment when you want them reflected in net performance.