Business & investing
ROI Calculator
ROI compares what you got back with what you put in. Add how long you held the investment to get the annualized figure, which is the fair way to compare a two-year return with a ten-year one.
Your result will appear here.
How it's calculated
ROI is the gain divided by the cost. Annualized ROI is the steady yearly return that turns the investment into the final amount over the time held, the same idea as CAGR.
ROI = (Returned − Invested) ÷ Invested Annualized = (Returned ÷ Invested)^(1/years) − 1
How to do it in Excel
=(B2-B1)/B1- ROI, with the amount invested in B1 and returned in B2.
=(B2/B1)^(1/B3)-1- Annualized ROI over B3 years.