Savings & Investment

ROI Calculator

Calculate return on investment from initial investment and final value.

ROI = (Final value - Investment) / Investment × 100%

What this calculator does

Calculate simple holding-period return for one initial outlay and one ending net value, without annualizing for time.

Scope, period, and currency

This page runs a local formula from user-entered values. The country/currency selector changes money symbols and formatting only: it does not perform live or historical FX conversion or automatically change contract, tax, accounting, or regulatory rules. Convert all amounts into one currency first and keep periods and metric definitions consistent.

Formula variables

I: Total initial investment, including costs you choose to include.
F: Ending net value plus any income you choose to include.

Formula and worked example

Formula: Gain = F − I; ROI = (F − I) ÷ I × 100%.

Recalculation: $12,000 total cost and $18,500 net proceeds plus income produce a $6,500 gain and 54.17% holding-period ROI.

Model assumptions

All relevant fees and income are incorporated consistently in I or F.
There are no intermediate cash flows requiring time-weighted or money-weighted analysis.
The formula does not account for duration, risk, inflation, or tax.

Reading the result and model boundary

ROI compares gain with initial cost but does not annualize it.
Projects with different durations need an annualized or cash-flow-aware measure.

This is a two-point simple return, not CAGR, IRR, or a profitability forecast.

How to use it

Define total cost and net ending proceeds.
Add income and subtract fees under one documented convention.
Calculate ROI, then compare duration and risk separately.

Common incorrect uses

Leaving dividends or fees outside both values.
Comparing a one-month ROI with a five-year ROI as if time were equal.
Using zero initial investment.

Suggested verification workflow

Reconcile cost and proceeds.
Calculate holding-period ROI.
Add time, risk, tax, and cash-flow analysis.

FAQ

Should dividends be included?

Yes, include net income in ending value when you want total return.

Is this ROI annualized?

No. The formula has no time input.

Does currency selection convert values?

No. It changes display formatting only; both values must use one currency.

Method and review boundary

Results are calculated locally in the browser from the formula shown on this page. The tool does not retrieve live rates, quotes, approvals, or billing data. Last reviewed: July 24, 2026.

Use the result for first-pass estimates, scenario comparison, and question preparation; it is not financial, investment, tax, accounting, or legal advice.

Authoritative sources and notes

Investment return components - FINRA
Evaluating investment performance - FINRA
Google Ads ROI definition - Google

Sources checked July 24, 2026. Rates, product rules, and official guidance can change; verify them again before a formal decision.