Reckonary / Finance / ROI calculator
Return on investment
Return on investment, or ROI, measures how much you gained or lost relative to what you put in. Enter the amount invested and the amount returned, and this calculator shows the ROI as a percentage plus the profit in dollars. A positive figure is a gain; a negative one is a loss.
ROI is the profit divided by the amount invested, written as a percentage. Put in $1,000 and get back $1,500 and your profit is $500, so the ROI is 50%. The percentage lets you compare deals of very different sizes on equal footing — a $200 gain on $1,000 and a $2,000 gain on $10,000 are both a 20% return.
ROI says nothing about how long your money was tied up. A 20% return in one year is far better than the same 20% spread over five years, yet both show as 20% here. When you compare investments held for different lengths of time, look at the annual rate as well, not the raw ROI alone.
For an honest number, the amount returned should be what you keep after fees, commissions, and taxes — the net return. Using the gross figure overstates ROI. If you paid to enter or exit the investment, subtract those costs from the amount returned before you read the result.
What counts as a good ROI?
There is no universal number — it depends on the risk and the alternatives. A return that beats what you could earn safely elsewhere, after fees and taxes, is the practical bar. Higher returns usually come with higher risk.
Can ROI be more than 100%?
Yes. If you get back more than double what you put in, ROI passes 100%. Put in $1,000 and receive $2,500 and the ROI is 150%.
What's the difference between ROI and ROE?
ROI measures the return on the total amount you invested. Return on equity (ROE) measures a company's profit against shareholder equity. They answer different questions, so don't treat the two figures as interchangeable.
How do I turn ROI into a yearly rate?
Raise one plus the ROI to the power of one over the number of years, then subtract one. A 50% ROI over three years works out to roughly 14.5% per year, not 50% divided by three.
Last reviewed June 2026. This tool is for education, not financial advice.