# ROI Calculator

This ROI calculator (return on investment) calculates an annualized rate of return using exact dates. Also known as ROR (rate of return), these financial calculators allow you to compare the results of different investments. More below

#### Info...

As a side benefit of this calculator's date accuracy, you can also use it to do date math calculations. That is, it will find the date that is "X" days from the start date or given two dates, it will calculate the number of days between them.

Calendar Tip: When using the calendar, click on the month at the top to list the months, then, if needed, click on the year at the top to list years. Click to pick a year, pick a month and pick a day. Naturally you can scroll through the months and days too. Or you can click on "Today" to quickly select the current date.

If you prefer not using a calendar, single click on a date or use the [Tab] key (or [Shift][Tab]) to select a date. Then, as mentioned, type 8 digits only - no need to type the date part separators. Also, because the date is selected, you do not need to clear the prior date before typing. If your selected date format equals mm/dd/yyyy, then for March 15, 2016, type 03152016.

A final word about ROI/ROR financial calculators — because two different calculators may use different equations, don't compare the results from one ROI calculator for one investment with results from another calculator for a different investment. Use the same calculator to compare two different investments.

## What is ROI?

ROI or Return on Investment calculates the percentage gained or lost on an investment.

Enter the "Amount Invested" and the date the investment was made ("Start Date"). Enter the total "Amount Returned" and the end date.

You can change the dates by changing the number of days. Enter a negative number of days to adjust the "Start Date". Or as you change a date the "Number of Days" will update.

The results include the percentage gained or loss on the investment as well as the annualized gain or loss also expressed as a percent. The annualized return can be used to compare one investment with another investment.

Example: If you bought $25,000 worth of your favorite stock on January 2nd 2014 and sold it for $33,000 on June 7th 2015, you would have a gain of $8,000 which is 32%. The annualized gain is 21.5%.

Now, lets say you made a second investment on January 2nd, 2015. This time for $10,000 and you sold it for $11,000 on March 1st, 2015. The gain is only $1,000 or 10%. However, annualized the gain is 82.1%. Ignoring risk (which can be very dangerous), one would generally consider the latter investment to be better than the former.

## Joe says:

I have a question (I think I am doing this right, but need confirmation)….

I need to know how much money an annual investment would earn over a period of 6 years. Each annual investment represents a 10% increase. I started with 86,900. The interest rate is 11.5% and it is compounded daily each month. I want to try to calculate what interest should have been earned at the end of each year. Interest is just rolled over to the following year…

86,900.00 Starting year 6 January 2012

95,590.00 Starting year 5 January 2013

105,149.00 Starting year 4 January 2014

115,663.90 Starting year 3 January 2015

127,230.29 Starting year 2 January 2016

139,953.32 Starting year 1 January 2017

670,486.51 = This is the total invested since 2012

## Karl says:

You can do what you want on this site, but not with the ROI calculator. Please use the Ultimate Financial Calculator.

One on that page, scroll down the page and look at the tutorials. Everyone should read tutorial #1 to get an overview of who the calculator works. Then tutorial #2 deals with investment cash flows. I think these two should get you started. If after looking at them you have additional questions, please feel free to ask them on that web page.

## jake says:

Heya i want to find out the roi for a project

i have entred this

Amount Invested

£1,034.00

Amount Returned

£80,000.00

Days (-9,999 < # 1969)?:

11/13/2015

End Date (year < 2100)?:

11/12/2016

these are the result i get back

Gain or Loss:

£78,966.00

Percentage Gain or Loss:

7,636.9439%

Annualized Return (ROI):

7,636.9439%

Total Years: 1

what does Annualized Return (ROI):

7,636.9439% mean??

## Karl says:

It is a way of expressing the rate-of-return so that different investments for different duration can be compared. It what the rate of return would be if the investment had been invested for one year.

With this example, one day short of a year, it equals the gross return, most likely because the ROI is express to only 4 digits. Perhaps if it were extended out to say 8 or 10 digits there would be a difference between the percentage gain or loss and the annualized return.

Does this answer your question?

## jake says:

sorry am not very good at this

invested amount 1034

gained 80000

so it says my ROI is 7,636.9439% for Total Years: 1

how would i express it

would it make any sense if i say the Return of investment is 7,636.94% for i year

## jake says:

And why is such a high number??

## Karl says:

The number is high because the growth is huge.

Let’s make sure you understand what this calculator means. From the numbers in the earlier message you are saying that an amount, 1034, was invested one time, on Nov. 13, 2015. Additionally, this means there were no other amounts invested (or withdrawn). At the end of nearly a year (1 day short) on Nov. 12, 2016, the value of the investment was 80,000.

If this is not what you mean, then the return would not have been over 7,000%.

If you mean something else, please state what it is, and we’ll see what calculator you should be using to calculate the ROI.

## Karl says:

Yes, that’s what you would say.

## Aaron says:

Great tool, just what I need for personal stock investing. Thanks!

## Darius says:

Can someone please help me with how this math and logic would work in an excel sheet?

## Karl says:

Perhaps someone reading will be able to answer your question. So you know, I limit the support I give to questions about what calculator to use and how to use a particular calculator.

## Akinlolu says:

Use the ROI equation = (Gain from investment – cost of investment)/(cost of investment) x100

This is for the first year.

For the second year it will be (2*Gain from investment-cost of investment)/(cost of investment) x100

Of course this is assuming that the same gain occur every year and the cost of investment is a one time fee paid during the first year only.

## Dave says:

Nice tool. However, no. of days calculation seems to be off. How come?

## Karl says:

Thank you.

Please provide an example showing what you think is wrong.

## Karl says:

Perhaps I should point out that a year is Jan 1 – Jan 1. NOT Jan 1 – Dec. 31.

The time-of-day is always 12:00am (midnight). And if a user enters Jan 1 – Dec 31, they are missing the entire day of Dec 31 in the calculation.

Does that change things for you?

## Dave says:

Yes. If I use, e.g., 1/1/2018 – 12/31/19, the number of days is off by a fairly large number (not just one). If I use 1/1/2018 – 1/1/2028, the number of days is right on the money.

Thanks for the tip.

## Karl says:

For 1/1/2018 – 12/31/19, I get 729 days. What do you get?

729 days is correct. Neither year is a leap year. Jan 1, 2018 – Jan. 1, 2020 is 2 years or 2 x 365 = 730. Jan 1, 2018 – Dec. 31, 2019 is one day short, or 729 days.

Please let me know if you are getting something else.

If you see another value for number of days, please make sure you have exited both date inputs. Exiting either date input will cause the number of days to update. If the cursor is in a date field, the number of days are not necessarily updated, since the calculator is not sure the dates have been selected.

## malory says:

How do i calculate an ROI for an investment i want to do, but don’t have an actual return rate

## Karl says:

This calculator should do what you need assuming that your investment involves investing a single amount and then selling the investment in one transaction at some point in the future. You don’t need a return rate because ROI is calculated using the investment amount and the amount gained or lost (resulting in a negative ROI).

Or do you have a series of investments and/or withdrawals?

## stephen says:

karl,

meant to ask a previous question for this calculator. How do you do this same calculation by hand or in excel? trying to calculate this roi for many investments with various redemption dates. thanks!

## Karl says:

Use Excel’s IRR or XIRR builtin functions.

## Fari says:

Suppose that on February 2, 2017, the security’s price was $89.00. If an investor had purchased it for $81.99 a year earlier and sold it on this day, what annual rate of return would she have earned?

## Karl says:

Are you asking how do do this calculation? Enter the tow numbers and the two dates you provided. After you click calculate, the calculator will calculate the annualized rate of return.

Or was there something else you needed?

## gerry giovanelli says:

What calculator do I need to track an investment in witch periodic additions and withdrawals are made with no particular regularity?

Thanks for your reply

## Karl says:

Please try the Ultimate Financial Calculator.

Set the "Schedule Type" to "Savings."

You can enter deposit(investments)/withdrawals on any date. You can change rates on any date.

Scroll down the page for 25 tutorials.

If you have any questions, just ask.

## Alex says:

Thank! An excellent calculator and a detailed description of it. Recently I was just going to make a similar calculator using https://ucalc.pro/en and your article helped me with this.

## Jay says:

If I invest $5,000 in company with a return rate of 7%, how would I calculate the return?

## Karl says:

Depends. If the term is a multiple of a year, you can use this financial calculator.

You can confirm the result by going to "Settings" and selecting "Analytics" and turning on:

"Include internal rate of return (IRR) on schedule"

Looking at the "IRR" on the schedule will tell you how close the calculated result is to your 7% desired return.

If the term is for something other than an exact number of years, the IRR will be off for the desired amount. In that case you can only manually adjust the result to see what it takes to get the desired return.

The problem is, the odd number of days along with an annual interest rate.

The IRR is an annualized rate of return, calculated independently from the interest rate earned.

I’ll have to think about how an amount can be calculated from the ROI rate and not an interest rate. Perhaps I can add a direct calculation as an enhancement.

## Paul says:

This is quite amazing.

You build a free calculator, which I used and think is very good, and you are answering questions and helping folks….that’s great!

I don’t remember seeing that anywhere else….good for you!

And you are enjoying your very own site, congrats.

## Laura Hernandez says:

I think your calculator is fantastic. It assured me my rough calculations and guesses were correct. It was easy to use and saved me a lot of time. Thank you!

## Karl says:

Thanks, Laura for the feedback and compliment. Much appreciated.

## Stergios Mimidakis says:

Hello,

My calculations gave me a net profit of 400,000$ over 25 years on an initial investment of 150,000$. My total rate of return is 266% which, according to your calculator, comes out to an annualized rate of return of a little over 5%. But why is my annualized ROR not 10%, considering that 266% over a 25 year period comes out to that percentage (266% divided by 25 years)?

## Karl says:

Hi, this is an excellent question.

The short answer is because dividing the gross percentage return by the number of years invested is not the formula for calculating an annualized ROI. Dividing the gross percentage return by the number of years does not allow for the effect of compounding.

You can prove this to yourself two ways. First, do the arithmetic in reverse (I’m showing a bit more precision than the calculator so as to remove the rounding error):

The above clearly illustrates how a 10% return does not require the retention of the annual $16,000 growth within the investment. In other words, the $16,000 is being withdrawn.

The second way to prove the result is to use the future value calculator. Invest $150,000 for 25 years @ an annual compounded rate of 10% and the result is $1,625,205.89.

Hope this helps.

## Stergios Mimidakis says:

Wow, thank you very much for the quick response!

And your explanation definitely helps!

Sincerely,

Stergios

## Karl says:

You’re very welcome. My pleasure. And thank you for letting me know it was useful. 🙂

## Akinlolu says:

Thank you very much for this calculator. It is very much appreciated.

Quick question:

I want to invest $808,523.32 in a machine, this include utility bill, maintenance and tooling. The useful life of the machine is 20 years. Investing in this machine will save $276,942 annually. What would be the ROI?

Thank you

## Karl says:

The better calculator for this problem is the internal-rate-of-return calculator. The IRR calculator calculates an annualized rate-of-return when there’s a cash flow involved – in your case, that would be the savings per year.

But just a note, calculating the ROI might be more complex than just looking at the savings. Does this machine make a product that can be sold? If so, then some percentage of the profit should figure into the ROI as well.