ROI Calculator (Return on Investment)

Compute simple ROI %, net profit, return multiple (MOIC), and annualized ROI over your exact holding period.

Total Return on Investment (ROI)
54%
Annualized return (CAGR): 13.13% per year over 3.5 yrs
Net Profit / Gain $13,500.00
Annualized ROI (CAGR) 13.13%
Return Multiple (MOIC) 1.54×
Holding Period 3.5 yrs
Inputs
USD ($)
Total initial cost basis including fees.
USD ($)
Total proceeds or current market value.
years
Length of time capital was deployed (in years).
Results & Graph
Total Return on Investment (ROI)
54%
Annualized return (CAGR): 13.13% per year over 3.5 yrs
Net Profit / Gain
$13,500.00
Annualized ROI (CAGR)
13.13%
Return Multiple (MOIC)
1.54×
Holding Period
3.5 yrs

Capital Invested vs. Final Return Value

Comparison of initial capital outlay and ending return
Graph 1 • Compound Annual Growth Trajectory Curve Tracks compounded value from initial capital to ending value
0 135.0k 270.0k Yr 0: 100,000 100.0k Yr 0 Yr 1.3: 126,901 126.9k Yr 1.3 Yr 2.5: 158,114 158.1k Yr 2.5 Yr 3.8: 200,648 200.6k Yr 3.8 Yr 5: 250,000 250.0k Yr 5
Graph 2 • Initial Principal vs. Net Investment Gain Ring Share of ending portfolio value
ENDING VALUE 250.0k Initial Invested Capital 100.0k (40.0%) Net Capital Gain 150.0k (60.0%)
Graph 3 • Required Financial Independence (FIRE) Corpus by SWR (4.0% to 3.0%) 25× to 33.3× annual living expenses
4.0% Standard Trinity Rule (25× Annual Expenses) 1.00M 3.5% Conservative Early FIRE (28.6× Expenses) 1.14M 3.0% Ultra-Safe Perpetual FIRE (33.3× Expenses) 1.33M
Summary: Initial cost is $25,000.00, final value is $38,500.00, and net gain is $13,500.00.
Summary: An investment of $25,000.00 returning $38,500.00 after 3.5 years produces a net gain of $13,500.00, representing a 54% total ROI and a 13.13% compound annual growth rate.

Formula & Mathematical Methodology: Total ROI and Annualized ROI Formulas

ROI = Final − InitialInitial × 100%,   Annualized ROI = [(FinalInitial)1n − 1] × 100%
ROI (%) = [ (Final − Initial) / Initial ] × 100; Annualized ROI = [ (Final / Initial)^(1 / Years) − 1 ] × 100
  • Initial: Total capital invested at start
  • Final: Total ending value returned
  • Years: Holding period in years

Rounding: Percentages and multiples round to 2 decimal places.

Worked Example: $25,000 Investment Growing to $38,500 Over 3.5 Years

An investor puts $25,000 into a project and exits after 3.5 years with $38,500.

  1. Net profit = $38,500 − $25,000 = $13,500.
  2. Total ROI = ($13,500 ÷ $25,000) × 100 = 54.00%.
  3. Annualized ROI = [(38,500 ÷ 25,000)^(1 ÷ 3.5) − 1] × 100 = 13.12% per year.
Result: Total ROI is 54.00% ($13,500 net profit) and annualized ROI is 13.12%/year.

Frequently Asked Questions

Why is Annualized ROI lower than Total ROI divided by years?

Because investment returns compound each year. A 54% gain over 3.5 years requires 13.12% compounded annually, whereas simple division (54% ÷ 3.5) would overstate the annual rate at 15.43%.

Finance & Investing • Investment Performance & Business Returns Guide

How to Use the ROI Calculator (Return on Investment): Practical Guide & Visual Analysis

Measure both total percentage gain and time-weighted annualized return (CAGR) so you can compare investments held for different durations on an equal footing. Whether you are researching return on investment, annualized roi, investment profit calculator, moic calculator, this interactive tool helps you calculate total Return on Investment (ROI %), net dollar gain, return multiple (MOIC), and annualized return (CAGR) over any holding period.

Interpreting the 3 Custom Visual Graphs & Key Outputs

As you adjust Initial Amount Invested, Final Value / Amount Returned, Holding Period, the calculator immediately computes Total ROI (%), Annualized ROI / CAGR (%), Net Profit ($), Return Multiple (MOIC) and updates all three domain-specific SVG charts in real time. Instead of relying on a single static figure, you can inspect the primary domain diagram, component breakdown, and multi-point trajectory curve to see how changing your inputs shifts the final result. Use the Compare (up to 3 scenarios) button to evaluate side-by-side variations before making a decision.

Real-World Benchmark & Planning Tips (Global)

In our benchmark scenario ($25,000 Investment Growing to $38,500 Over 3.5 Years), Total ROI is 54.00% ($13,500 net profit) and annualized ROI is 13.12%/year. Keep in mind that assumes a single initial cash outflow and a single ending value without intermediate cash distributions. For related calculations in Finance & Investing, explore CAGR & FIRE Calculator (Financial Independence), Compound Interest Calculator, Marketing ROAS, CPC, CPM, CPA & CTR Calculator.