ROI Calculator

ROI Calculator

Calculate total return on investment, net profit or loss, return multiple and annualised ROI.

Enter the amount originally invested.
Enter the value received or current ending value.
Include dividends, rent or other cash income; enter 0 if none.
Include fees and directly related costs; enter 0 if none.
Used to calculate the annualised return.

How to use the ROI Calculator

Enter the initial investment, final value, any additional income, extra costs and the investment period. Use zero where there is no additional income or cost. The calculator shows the overall ROI and an annualised rate for comparison.

ROI formulas

Result Calculation
Total proceeds Final value + additional income − additional costs
Net profit or loss Total proceeds − initial investment
Total ROI Net profit or loss ÷ initial investment × 100
Annualised ROI (Total proceeds ÷ initial investment)1 ÷ years − 1

Understanding a positive or negative ROI

A positive ROI means total proceeds exceed the initial investment. A negative ROI means the investment lost money after the entered income and costs. An ROI of zero is the break-even point.

Total ROI versus annualised ROI

Total ROI measures the full gain or loss over the entire period. Annualised ROI converts the result into an equivalent compounded yearly rate, which can make investments held for different lengths of time easier to compare.

Include all relevant costs

Ignoring fees, maintenance, marketing, transaction expenses or other direct costs can overstate ROI. Use figures from the same time period and apply the same cost treatment when comparing alternatives.

Important: ROI alone does not measure risk, cash-flow timing or whether one investment is suitable. British Business Bank recommends calculating ROI before major purchases or new projects as part of a wider decision process.

See the British Business Bank guide to business decisions for broader factors to consider.

Related calculators

Estimate qualifying innovation relief using the R&D Tax Credit Calculator UK. Find the sales level needed to cover costs with the Break-Even Calculator. Browse all tools on the United Kingdom Calculator homepage.

Frequently asked questions

What is a good ROI?

There is no universal target. A useful benchmark depends on risk, time, financing, inflation and available alternatives.

Can ROI be negative?

Yes. ROI is negative when the final proceeds after income and costs are lower than the initial investment.

Should fees be included?

Yes. Include direct costs so the result does not overstate the investment return.

Why is annualised ROI different?

Annualised ROI allows for the length of the investment and expresses the compounded result as an equivalent yearly rate.

Does this calculator include tax and inflation?

No. It uses the cash values entered and does not adjust for tax or purchasing power.



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