Calculate total return on investment, net profit or loss, return multiple and annualised ROI.
This is a simple cash-return comparison. It does not account for tax, inflation, financing, irregular cash-flow dates, risk or the opportunity cost of capital.
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.
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.