Finance · Interest and investing
Calculate return on investment (ROI)
ROI here is a simple ratio of gain (or loss) to cash put in. It does not know whether the outcome took a month or a decade. CAGR is the tool that uses years.
Calculate
How the calculator works
Gain = returned − invested. ROI = gain / invested, shown as a percent. A loss is a negative ROI. Invested = 0 is rejected. There is no compounding frequency and no holding period.
Formula and method
ROI = (valeur récupérée − misé) / misé
$8,000 in, $10,400 back: gain $2,400, ROI = 30%.
This is the textbook one-period ROI, not a time-weighted or money-weighted return, not XIRR, not a Sharpe ratio. Fees belong in the two dollar amounts if you want them in. Multiple deposits over time make “invested” ambiguous; pick a definition and stick to it, or use the contributions page plus honesty about timing.
Worked example
$8,000 in, $10,400 back
invested $8,000, returned $10,400.
- Gain = 10,400 − 8,000 = $2,400.
- ROI = 2,400 / 8,000 = 0.30 → 30%.
30% ROI, with no statement of how many years that took.
Input notes
- Amount invested
- Denominator. Usually cost basis or cash outlay. Zero is refused.
- Amount returned
- What you received. Below invested produces a negative ROI.
Assumptions and limits
Assumptions
- One invested amount, one returned amount.
- No time input.
Limits
- Cannot compare a 30% month with a 30% decade.
- Not annualized.
- Not a recommendation to buy or sell.
How to read the result
30% means you got back $1.30 per $1 put in, regardless of calendar time. To annualize two points, use CAGR. Margin on a product sale (profit / price) is a different ratio with a different denominator.
Common mistakes
Calling ROI an annual return.
This formula has no years. CAGR does.
Putting profit in “returned” and cost in “invested” when you meant margin on sales.
Margin uses selling price as the denominator. ROI uses capital invested.
Related calculations
- CAGRCAGR is the fictional constant annual rate that would take a starting value to an ending value in n years. It smooths the trip: a crash and a rebound disappear into one number.
- Profit marginMargin puts profit over selling price; markup puts profit over cost. With $60 cost and $100 price, margin is 40% and markup is 66.7%. You cannot swap the two percents.
- Percent differenceA and B are not labeled “before” and “after.” You get the absolute gap, the gap relative to A, relative to B, and the symmetric gap (divided by the average). That is not a percent increase.
- Inflation and purchasing powerAn amount, a constant annual rate, a period. Compound forward, or bring a later sum back to today’s purchasing power.
- Compound interestGrow a single principal at a nominal annual rate with a chosen compounding frequency, including continuous compounding. The page also reports the effective annual rate. There are no recurring deposits on this form.
- Simple interestInterest is proportional to principal, rate, and time. It does not itself earn interest. Use this only when a contract is actually simple, not as a stand-in for savings compounding.
Frequently asked questions
Does ROI include time?
Not on this page.
Two deals with the same ROI can have wildly different holding periods. If time matters, compute CAGR or an IRR in a dedicated tool (not offered here beyond CAGR).
Can returned be zero?
Yes. ROI is then −100%.
You invested something and got nothing back. Invested still cannot be zero.
Should I annualize by dividing by years?
A raw ROI / years is not a compound rate.
Dividing 30% by 3 years to get “10% a year” ignores compounding. CAGR is (end/start)^{1/n} − 1.
Author and update
Written by Rédaction HexaCalc (editorial team). Content last updated: August 25, 2026. No third-party medical or financial review is claimed.
This calculation uses a standard mathematical identity. See also the methodology.
When the clock matters
CAGR is the constant annual rate that would turn a start value into an end value in n years.
Calculate CAGROne-period ROI ratio. Not annualized, not advice. This is a calculator, not financial, tax, or credit advice, and not a loan or investment offer. Lenders and brokers apply their own rounding, fees, insurance, and APR. Check the actual contract and disclosures.
Category: Finance