ROI Calculator
Compare the total amount returned with the amount invested.
Result
Return on investment: 25%
This is a holding-period return. It ignores when money moved, so use IRR for a timed cash-flow series and NPV when you have a required return.
- Gain or loss
- $2,500.00
- Amount returned
- $12,500.00
- Return multiple
- 1.25
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Results are arithmetic estimates based on the assumptions you enter, not accounting, tax, investment or lending advice. Forecasts can be wrong and important decisions should be checked with a qualified adviser. Read the full disclaimer
How to use the ROI Calculator
- Enter the full amount committed to the investment or project.
- Enter everything returned, including the original capital if it came back.
- Read the percentage together with the gain or loss and return multiple.
A return with a clearly named denominator
Return on investment compares the gain or loss with the amount originally invested. If 10,000 becomes 12,500, the gain is 2,500 and the ROI is 2,500 divided by 10,000, or 25%.
gain or loss = amount returned − amount investedROI = gain or loss ÷ amount investedThe return multiple expresses the same result another way. A 1.25× multiple means the total returned was one and a quarter times the amount invested. It is not a 125% gain; the gain is the amount above the original 1×.
What this result leaves out
Simple ROI does not know whether the return took a month or a decade, and it does not know when any intermediate cash flow arrived. That makes it useful for a quick completed-project comparison, but unsuitable for comparing projects with different timelines.
Use the IRR calculator for an initial investment followed by annual cash benefits. Use NPV when you also have a required return or discount rate. Neither result removes the uncertainty from the forecast you enter.
With your numbers
- Gain or loss = $12,500.00 − $10,000.00 = $2,500.00
- ROI = $2,500.00 ÷ $10,000.00 = 25%
- Return multiple = $12,500.00 ÷ $10,000.00 = 1.25×
Quick reference
This is a holding-period return. It ignores when money moved, so use IRR for a timed cash-flow series and NPV when you have a required return.
| Example | Return on investment |
|---|---|
| 10,000 invested and 12,500 returned | 25% |
| 5,000 invested and 4,500 returned | -10% |
| 20,000 invested and 20,000 returned | 0% |
| 2,500 invested and 5,000 returned | 100% |
| 75,000 invested and 90,000 returned | 20% |
| 1,200 invested and 900 returned | -25% |
Common questions about the ROI Calculator
- Does ROI account for time?
- No. A 25% return over one year and over ten years are both 25% here. Use IRR when the timing of annual cash flows matters.
- Should the amount returned include my original investment?
- Yes. Enter the total value received back. The calculator subtracts the amount invested to find the gain or loss.
- Does this include tax, fees or inflation?
- Only if the amounts you enter already include them. The calculator adds no assumptions of its own.