ROI Calculator

Use this ROI (Return on Investment) Calculator to estimate the gain or loss on an investment compared with the amount originally invested. You can calculate ROI percentage, returned amount, invested amount, profit, and return multiple.

Important: This[object Object],[object Object],[object Object] calculator uses simple ROI. It does not account for how long the investment was held, so the result should not be interpreted as an annual return.

ROI Calculation Formula

First calculate the profit or loss:

Profit = returned amount − invested amount

Then calculate return on investment:

ROI = (profit ÷ invested amount) × 100

Or directly:

ROI = [(returned amount − invested amount) ÷ invested amount] × 100

A positive ROI represents a gain, while a negative ROI represents a loss.

Return Multiple

The return multiple compares the total amount returned with the original investment:

Return multiple = returned amount ÷ invested amount

For example, a return multiple of 1.25× means the returned amount equals 1.25 times the original investment.

Finding a Missing Amount

If you know the invested amount and target ROI:

Returned amount = invested amount × (1 + ROI ÷ 100)

If you know the returned amount and ROI:

Invested amount = returned amount ÷ (1 + ROI ÷ 100)

Worked Example

Suppose you invest $5,000 and later receive $6,200.

Profit:

$6,200 − $5,000 = $1,200

ROI:

($1,200 ÷ $5,000) × 100 = 24%

Return multiple:

$6,200 ÷ $5,000 = 1.24×

The investment therefore produced a $1,200 gain, a 24% simple ROI, and a 1.24× return multiple before accounting for additional costs, taxes, or inflation.

Important Notes

• Include relevant fees and transaction costs in the invested amount when you want a more realistic ROI estimate.
• The returned amount should include the value actually received from the investment, including relevant income such as distributions when appropriate.
• Simple ROI does not account for investment duration or compounding.
• A 20% ROI earned over one year is not directly equivalent to a 20% ROI earned over five years. Annualized return is more appropriate for comparing different holding periods.
• Taxes, inflation, financing costs, maintenance expenses, leverage, and other costs are not automatically included.
• Investments involving several deposits and withdrawals at different times may require measures such as IRR rather than simple ROI.
• ROI alone does not measure investment risk or predict future performance.
• When solving for invested amount, an ROI of -100% cannot be used because the formula would require division by zero.

Sources

• FINRA — Calculating Your Investment Returns
• FINRA — Evaluating Investment Performance
• Inestor.gov — Real Return