Enter the amount invested and the final value returned to get your ROI percentage and net gain or loss.

Reading return on investment

Return on investment measures the gain or loss on money you put in, as a percentage of the amount invested. It is the most common yardstick for comparing investments, projects, and marketing spend, precisely because it reduces everything to one comparable number.

Its biggest limitation is that it ignores time. A thirty five percent return earned in one month is dramatically better than the same thirty five percent earned over five years, yet plain ROI treats them as equal. For time sensitive comparisons, an annualized return is the fairer measure.

For an honest figure, subtract fees and costs from the final value before calculating. ROI is informational only and is not investment advice.

The formula

Worked example

Invest 1,000, end with 1,350: net 350, ROI = 350 / 1000 = +35%.

How to read your result

ROI ignores time - a 35% return over one month is very different from over five years. For time-adjusted returns, use an annualized measure.

Frequently asked questions

Does ROI account for time?

No. Two investments with the same ROI over different periods are not equally good.

Can ROI be negative?

Yes - a final value below the cost gives a negative ROI (a loss).

Should I include fees?

Yes - subtract fees from the final value for a truer ROI.

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