Finance
Calculate return on investment with optional annualized returns.
Return on Investment
50%
ROI is calculated as (final value − initial investment) / initial investment × 100. Annualized return is available when a time period is entered.
Return on Investment (ROI) is a percentage that shows how much profit you made per pound or rupee invested. If you invested 100 and made 25 profit, your ROI is 25%. It's the universal language for measuring investment performance—higher ROI means better returns, but also often higher risk.
The calculator subtracts your initial investment from your final value to find profit, then divides profit by the initial investment and multiplies by 100 to get a percentage. This percentage tells you how efficiently your money grew. You can also input the profit or final value directly, and the tool calculates the missing piece.
ROI = ((Final Value - Initial Investment) / Initial Investment) × 100Final Value is what your investment is worth now. Initial Investment is what you put in. The result is ROI as a percentage. A positive percentage means you made profit; negative means a loss.
| Input | Result | Notes |
|---|---|---|
| Initial: £1,000 | Final value: £1,250 | ROI = 25% | You turned £1,000 into £1,250, gaining £250 or 25% profit. |
| Initial: £5,000 | Profit: £500 | ROI = 10% | A modest 10% return is typical for safer investments like bonds or savings accounts. |
| Initial: £10,000 | Final value: £8,500 | ROI = -15% | A negative ROI means you lost money; here, £1,500 was lost on a £10,000 investment. |
It depends on risk and time. Stock market averages around 10% annually. Bonds might be 4–6%. Property 8–12%. High-risk ventures can hit 50%+ but may lose money. Compare your ROI to your goal and risk tolerance.
Yes. If your investment loses value, ROI is negative. A -20% ROI means you lost one-fifth of your money. It's not failure—it's data. Use it to learn and adjust.
No. Profit is the actual money you made (e.g., £500). ROI is profit as a percentage of what you invested (e.g., 10%). ROI lets you compare investments of different sizes fairly.
This calculator works for single-lump-sum investments. For multiple investments over time, calculate ROI for each batch separately, or use the total amount invested as 'Initial Investment' and total current value as 'Final Value' for a blended ROI.
For short-term investments (under 3 years), raw ROI is fine. For longer periods, annualized ROI (ROI divided by years held) is fairer because it shows return per year and lets you compare across time frames.
No, it doesn't. You must subtract taxes and fees from your final value before entering it. If you earned £1,200 but paid £200 in tax and fees, enter £1,000 as final value for your true net ROI.