Work out return on investment, annualized ROI, business and marketing ROI, or the full return on a rental property. Results update as you type.
Return on investment (ROI) compares what you gained with what you spent. It is the quickest way to judge whether an investment, ad campaign, project or property paid off.
| Calculator | Formula |
|---|---|
| Simple ROI | (Final value − Cost) ÷ Cost × 100 |
| Annualized ROI | (1 + ROI)^(1 ÷ years) − 1 |
| Marketing ROI (ROMI) | (Revenue × margin − Spend) ÷ Spend × 100 |
| Net income ROI | Net income ÷ Total assets × 100 |
| Cap rate | Net operating income ÷ Property value |
| Cash-on-cash return | Annual cash flow ÷ Cash invested |
| Gross rent multiplier | Purchase price ÷ Annual gross rent |
You invest 1,000 and it grows to 2,000 over 4.2 years. Gain is 1,000, so ROI is 100%. Annualized, that is about 18% a year, which is the number to use when comparing it with another investment held for a different length of time.
For real estate, ROI should include financing and running costs, not only the purchase price. The rental tab counts your down payment, closing costs and renovation as cash invested, then subtracts vacancy, management, maintenance, insurance, property tax, utilities and the mortgage payment. It also adds appreciation and loan paydown (equity) to give total return over 1, 5 or 10 years. Selling costs and income tax are not included.
ROI is simple, works for almost anything and makes unlike projects comparable. But it ignores time unless you annualize it, ignores risk, and depends on which costs and gains you include. Use it alongside IRR, NPV and payback period for big decisions.
Subtract the cost from the final value, divide by the cost, and multiply by 100.
ROI is the total return over the whole holding period. Annualized ROI converts it to a yearly rate so different time frames can be compared.
Choose a time length in months or years on the investment tab. The annualized figure is your yearly ROI; divide the total ROI by the number of months for a simple monthly average.
Use the business tab. Enter the revenue the activity produced, your profit margin on that revenue, and what you spent.
Cap rate ignores financing and measures the property’s income against its value. Cash-on-cash measures cash flow after the mortgage against the cash you put in.
For general information only. Results are estimates and not financial advice. Found a mistake? Report an error.
A common formula is (net return ÷ investment cost) × 100. Confirm whether the calculator asks for net profit or total value returned.
Simple ROI usually does not account for how long the investment was held. Compare time-aware measures when investment periods differ.