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NetGrow

ROI Calculator

Calculate return on investment (ROI) from invested and returned amounts. See net profit, payback multiple, optional annualized ROI, and simple charts.

Calculate return on investment (ROI)

ROI is a simple way to compare opportunities: how much did you get back relative to what you put in? Use it for marketing experiments, equipment purchases, hiring decisions, or investment outcomes.

Calculator

Enter your invested amount and returned amount to calculate ROI, profit, and payback multiple.

Used for annualized ROI and the growth chart.

Results

ROI is a simple metric—use it alongside risk, time, and cash flow.

Click Calculate to see ROI and charts.

How it works

  1. Enter your invested amount and returned amount.
  2. The calculator computes net profit, ROI%, and payback multiple.
  3. Add a duration to compute an annualized return (CAGR-style) and show a simple growth line.

Benefits

  • Compare options with a single consistent metric.
  • See both percent return (ROI) and absolute profit.
  • Use annualized ROI to compare investments with different durations.
  • Pair with cash flow tools to understand timing and payback speed.

ROI formula and examples

ROI is computed as:

ROI% = ((returned − invested) / invested) × 100

Example: invest $10,000 and return $15,000 → net profit $5,000 and ROI 50%.

ROI vs annualized return

A 50% ROI in 3 months is not the same as 50% over 3 years. Annualized ROI (CAGR-style) helps compare returns across different holding periods by converting them into an equivalent average yearly growth rate.

Use annualized ROI for longer horizons; use plain ROI for quick one-off comparisons (especially when you don’t have a duration).

Limitations of ROI

  • Ignores timing of cash flows (payback speed matters).
  • Doesn’t include risk or volatility.
  • Can look good on paper while harming cash flow in the short term.

Pair ROI with a cash view: Cash Flow Forecast Calculator.

ROI FAQs

What does ROI mean?▾
ROI (return on investment) measures how much profit you made relative to what you invested. It’s commonly used to compare opportunities or evaluate past performance.
What’s a “good” ROI?▾
It depends on risk, time, and alternatives. A 20% ROI in 1 month is very different from 20% over 5 years. Use annualized return to compare investments with different durations.
What is annualized ROI (CAGR)?▾
Annualized ROI converts a multi-year return into an equivalent average yearly growth rate (CAGR-style). It helps compare investments held for different lengths of time.
Does ROI include costs like fees and taxes?▾
Only if you include them in your invested and returned amounts. For a realistic view, include all costs (fees, tax, time, and operational overhead where relevant).
What’s the difference between ROI and profit?▾
Profit is the absolute amount you gained (returned − invested). ROI is profit relative to the invested amount, expressed as a percentage.
Can ROI be negative?▾
Yes. If you return less than you invested, ROI will be negative and net profit will be a loss.
What are the limitations of ROI?▾
ROI doesn’t account for timing of cash flows, risk, or volatility. Two investments can have the same ROI but very different payback timing or risk profiles.
How should I use this with other tools?▾
Pair ROI with a cash flow view (to understand timing) and with tax-aware planning when extracting income. See the Cash Flow Forecast and Dividend vs Salary tools.
NetGrow

ROI Calculator

Calculate return on investment (ROI) from invested and returned amounts. See net profit, payback multiple, optional annualized ROI, and simple charts.

Calculate return on investment (ROI)

ROI is a simple way to compare opportunities: how much did you get back relative to what you put in? Use it for marketing experiments, equipment purchases, hiring decisions, or investment outcomes.

Calculator

Enter your invested amount and returned amount to calculate ROI, profit, and payback multiple.

Used for annualized ROI and the growth chart.

Results

ROI is a simple metric—use it alongside risk, time, and cash flow.

Click Calculate to see ROI and charts.

How it works

  1. Enter your invested amount and returned amount.
  2. The calculator computes net profit, ROI%, and payback multiple.
  3. Add a duration to compute an annualized return (CAGR-style) and show a simple growth line.

Benefits

  • Compare options with a single consistent metric.
  • See both percent return (ROI) and absolute profit.
  • Use annualized ROI to compare investments with different durations.
  • Pair with cash flow tools to understand timing and payback speed.

ROI formula and examples

ROI is computed as:

ROI% = ((returned − invested) / invested) × 100

Example: invest $10,000 and return $15,000 → net profit $5,000 and ROI 50%.

ROI vs annualized return

A 50% ROI in 3 months is not the same as 50% over 3 years. Annualized ROI (CAGR-style) helps compare returns across different holding periods by converting them into an equivalent average yearly growth rate.

Use annualized ROI for longer horizons; use plain ROI for quick one-off comparisons (especially when you don’t have a duration).

Limitations of ROI

  • Ignores timing of cash flows (payback speed matters).
  • Doesn’t include risk or volatility.
  • Can look good on paper while harming cash flow in the short term.

Pair ROI with a cash view: Cash Flow Forecast Calculator.

ROI FAQs

What does ROI mean?▾
ROI (return on investment) measures how much profit you made relative to what you invested. It’s commonly used to compare opportunities or evaluate past performance.
What’s a “good” ROI?▾
It depends on risk, time, and alternatives. A 20% ROI in 1 month is very different from 20% over 5 years. Use annualized return to compare investments with different durations.
What is annualized ROI (CAGR)?▾
Annualized ROI converts a multi-year return into an equivalent average yearly growth rate (CAGR-style). It helps compare investments held for different lengths of time.
Does ROI include costs like fees and taxes?▾
Only if you include them in your invested and returned amounts. For a realistic view, include all costs (fees, tax, time, and operational overhead where relevant).
What’s the difference between ROI and profit?▾
Profit is the absolute amount you gained (returned − invested). ROI is profit relative to the invested amount, expressed as a percentage.
Can ROI be negative?▾
Yes. If you return less than you invested, ROI will be negative and net profit will be a loss.
What are the limitations of ROI?▾
ROI doesn’t account for timing of cash flows, risk, or volatility. Two investments can have the same ROI but very different payback timing or risk profiles.
How should I use this with other tools?▾
Pair ROI with a cash flow view (to understand timing) and with tax-aware planning when extracting income. See the Cash Flow Forecast and Dividend vs Salary tools.