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How to use
The ROI calculator measures gain or loss against the money actually committed. It combines the initial investment with optional fees, then compares that cost with final value plus any cash income received. The result includes ROI percentage, net gain or loss and a return multiple so one number is not viewed in isolation.
- Enter the initial investment and any fees or costs.
- Enter the final value and any cash income received during the holding period.
- Calculate to review ROI, net gain or loss, total cost, total value received and return multiple.
How it is calculated
Example
Example: invest 10,000, pay 200 in fees, finish with a value of 12,000 and receive 500 in cash income. Total cost is 10,200, value received is 12,500 and net gain is 2,300, giving ROI of about 22.55% and a 1.2255× return multiple.
Important notes
ROI does not account for time, timing of cash flows, taxes, inflation or risk. Do not compare a short holding period with a long one using ROI alone. If you need a smoothed annual rate between a starting and ending value, use the CAGR calculator. Results are informational estimates, not investment advice.
Worked examples and interpreting results
An investment of 1000 plus 100 fees, ending value 1200 and distributed income 120 gives net gain 220 and 20% return on total cost 1100.
| Case | Calculation | Result |
|---|---|---|
| Net gain | 1200 + 120 − 1000 − 100 | 220 |
| Return on total cost | 220 ÷ 1100 × 100 | 20 % |
How to check the result
Do not count income twice if it is already included in final value. This is total-period ROI, not annualized return, and it does not describe investment risk.
Frequently asked questions
What is the difference between ROI and profit?
Profit is a money amount; ROI divides net gain or loss by total cost to express the result as a percentage.
Should fees be included?
Yes. Adding fees makes total cost closer to the amount actually committed.
Is annual ROI the same as CAGR?
No. ROI measures the whole-period return, while CAGR expresses start-to-end growth as an equivalent compounded yearly rate.