Free calculator
ROI calculator
Measure return on investment from two numbers: what you put in (invested) and what you got back (returned). We show gain, total ROI %, and—when you add a holding period—CAGR (compound annual growth for a single inflow and single outflow). This is not an IRR engine, not tax-adjusted, and not the same as the compound interest timeline tool—see the methodology for when to use each.
When to use this calculator
Quick one-line checks before you build a full model—same spirit as a scratch cell block in Sheets or Excel.
- Compare initial spend vs cash back in on a project, campaign, or asset sale to get ROI % for a memo.
- Add a time window to translate the same two numbers into a CAGR for “what constant yearly return would replicate this multiple?”.
- Copy the ratio and optional power pattern into a workbook row to match this page’s definitions.
- Jump to the compound interest calculator when you need contributions, compounding frequency, and a balance over time—not just two endpoints.
Return on investment (ROI) on this page is the simple total percent change on money in vs money out for one investment and one terminal value.
Gain and total ROI %
Gain = returned − invested. Total ROI % = (returned − invested) ÷ invested × 100. A loss shows as negative ROI.
CAGR when you add a holding period
With holding years t > 0 and returned > 0, CAGR = (returned ÷ invested)^(1/t) − 1. That answers a different question than ROI ÷ t (a linear shortcut some pages show)—we label CAGR explicitly so you can match Sheets/Excel POWER patterns.
What we do not model
IRR, NPV, taxes, inflation, fees, and many cash flows need their own assumptions. For level payment streams, see the annuity calculator; for loan rows, the amortization schedule tool.
For spreadsheet parity, keep currencies aligned and treat labels as your policy—not an official filing number. For balances with deposits and compounding picks, open the compound interest calculator next. For period cash flows and simple or discounted payback, open the payback period calculator. For generic percent-of and percent-change drills, use the percentage calculator.
Google Sheets & Excel
English US/UK function names below. ROI is a simple ratio; CAGR uses a power on returned ÷ invested. Replace A2/B2 with your own cells.
=(B2-A2)/A2Format the cell as Percent, or multiply by 100 if you prefer a numeric ratio without percent formatting.
=(B2/A2)^(1/C2)-1C2 must be years as a plain number (for example 2.5). Requires B2>0 and A2>0. Format as Percent if needed.
Frequently asked questions
What is ROI?
Return on investment here means how much you made or lost relative to what you put in for one purchase and one ending value: (returned − invested) ÷ invested, often written as a percent.
What is the ROI formula on this page?
ROI % = (returned − invested) ÷ invested × 100. Gain is returned − invested. Currency and timing choices are yours to keep consistent with your workbook.
Is CAGR the same as ROI divided by years?
No. ROI ÷ years is a linear shortcut. CAGR (here) is (returned ÷ invested)^(1/t) − 1, the constant yearly rate that would connect the two endpoints—only meaningful when returned and invested are positive for the ratio.
Is this an IRR calculator?
No. IRR solves a rate that sets the NPV of many dated cash flows to zero. This page takes two totals and an optional single span—use a full cash-flow model or spreadsheet IRR/XIRR when you have a schedule of ins and outs.
When should I use the compound interest calculator instead?
Use compound interest for monthly savings, compounding frequency, and an ending balance path. This ROI page is for one cost and one outcome number—good for a headline percent, not a full timeline.
Does marketing ROI use the same math?
Often yes for a simple campaign check: (revenue − cost) ÷ cost when revenue and cost are defined the same way as returned and invested here. If your org includes organic lift or multi-touch rules, build that logic separately.
How do I match this in Google Sheets or Excel?
ROI: =(B2-A2)/A2 with invested in A2 and returned in B2, formatted as percent. CAGR: =(B2/A2)^(1/C2)-1 with years in C2—see the copy cards. In non-English Excel, find POWER via Formulas → Insert function for your language pack.
What does negative ROI mean?
You lost money relative to cost: returned is below invested. CAGR still exists mathematically when returned > 0 but is not shown here when returned is zero (ratio undefined).
Is ROI the same as gross or net margin?
Not usually. Margins compare profit to revenue (or similar income statement lines). ROI here compares net change to what you paid in for a single investment story—see the Lexicon on gross margin / net margin for statement definitions.
Can I use this for crypto trades?
You can type any non-negative returned and positive invested in the same unit (for example USD after conversion). We do not model fees on chain, staking, airdrops, or tax lots—treat answers as illustration only.
How are years from dates computed?
We take the calendar difference between your UTC YYYY-MM-DD picks and divide by 365.25 days per year so long spans stay reasonable. For audit-grade day-count conventions, replicate your policy in a sheet.
Why might this differ from our internal ROI?
Finance teams sometimes define ROI with extra costs, accruals, taxes, or annualization rules. This page is a transparent two-number teaching definition—rename lines in your model if you need TCO or board metrics.
Is this investment, tax, or accounting advice?
No. It is a free educational calculator—not a fiduciary recommendation, not a filing position, and not a substitute for qualified professionals when decisions have money on the line.