ROI Calculator: How much could your investments earn?

Return on investment (ROI) is one of the simplest ways to assess how an investment is likely to perform. Whether you're comparing shares, property or a business venture, understanding how much you stand to gain relative to what you invest can help you make more informed decisions.

Use our free ROI calculator to estimate how profitable an investment could be in seconds. You can also compare two options side by side, making it easier to weigh-up potential returns and choose the investment that best suits your goals.

ROI Calculator

What is ROI?

Return on investment (ROI) measures how much profit or loss you make compared to what you put in. It’s shown as a percentage, which makes it easier to compare different investments.
ROI is calculated using this formula:

Why use an ROI calculator?

Working out return on investment by hand is simple in theory, but easy to get wrong once you start factoring in different time periods or comparing several options. A calculator takes the guesswork out and lets you focus on the decision rather than the maths.

Using this calculator, you can:

• Skip the manual maths. Get an instant percentage return without reaching for a spreadsheet or formula.
• Compare different investments fairly. Expressing returns as a percentage puts shares, property, business ventures and side projects on the same footing, even when the dollar amounts are very different.
• Account for time. A 15% return in six months isn't the same as 15% over five years. The annualised view adjusts for the investment period so you're comparing apples with apples.
• Sanity-check an opportunity quickly. Before committing money or doing deeper research, you can see in seconds whether the numbers stack up.
• Plan toward a target. Estimate how long an investment needs to run to reach the return you're aiming for.

You don't need to be a finance professional to get value out of this tool. It's designed for first-time investors who want a quick gut-check, experienced investors comparing several options, property buyers, business owners, and anyone reviewing their long-term savings or super choices.

• How to use the ROI calculator

  The calculator has two main parts: basic ROI and annualised ROI.

  Start by entering your investment amount and the estimated final value. The calculator will automatically show your total gain and ROI percentage.

  To compare investments over time, switch to annualised ROI. You can enter the investment period in years, months or days, and the calculator will adjust your return to a yearly rate. There’s also an option to estimate how long it will take to reach a target return.

  If you want to compare two investments, you can add a second set of inputs and see which one performs better based on annualised ROI.

• ROI calculation examples

  Here are some practical examples to show how the calculator works across different scenarios.

  Example 1: Basic ROI

  ROI calculation example · dw:TwzE1

  Input	Value
  Investment (cost)	5,000
  Return (final value)	8,500
  Gain	3,500
  ROI	70%

  In this case, you made a 70% return on your $5,000 investment.

  Example 2: Annualised ROI over different periods

  Annualised ROI by holding period · dw:34849

  Investment	Time Period	Annualized ROI
  $5,000 → $8,500	1 year	70.00%
  $5,000 → $8,500	2 years	30.38%
  $5,000 → $8,500	5 years	11.20%

  Notice how the same dollar gain produces a much lower annualised ROI over a longer period. This is why time matters when evaluating investments.

  Example 3: Comparing two investments

  Comparing two investments by ROI · dw:puuBi

  Investment	Cost	Return	ROI	Duration	Annualized ROI
  Investment 1	$10,000	$15,000	50%	1 year	50%
  Investment 2	$10,000	$20,000	100%	3 years	26%
  Winner	—	—	Investment 2	—	Investment 1

  Even though Investment 2 has a higher total ROI (100% vs 50%), Investment 1 has a much better annualised ROI (50% vs 26%) because it achieved its return in a shorter time. This is exactly the kind of insight our comparison tool provides.

• Understanding your results

  Gain vs ROI

  Gain is the raw dollar profit: Return − Investment. ROI converts that into a percentage relative to your initial investment, making it easier to compare different-sized investments.

  Same dollar gain, different ROI · dw:MoZg9

  Scenario	Gain (dollars)	ROI (%)
  $100 invested, $200 returned	$100	100%
  $1,000 invested, $1,100 returned	$100	10%

  Both scenarios produce the same dollar gain, but Investment 1 is far superior on a percentage basis.

  Why annualised ROI matters

  A 50% return sounds strong, but it means very different things depending on how long it took to achieve. Annualised ROI standardises returns into a yearly rate, making comparisons more meaningful.

  An investment that returns 50% in one year is far stronger than one that takes five years to reach the same result.

  Total ROI vs annualised ROI · dw:9GsdI

  Investment	Total ROI	Duration	Annualized ROI
  Investment A	50%	1 year	50.0%
  Investment B	50%	5 years	8.5%

  Investment A is clearly superior despite having the same total ROI, because it returned money five times faster.

• How the 'Time needed' calculation works

  The Time needed mode answers: given my investment and target return rate, how long will it take to hit my goal?

  The formula used is:

  Time = (Return ÷ Investment) ÷ (1 + Annual ROI target) × scale

  Where scale = 1 for years, 12 for months, and 365 for days.

  Example: You invest $1,000, expect $2,000 back, and your target annual ROI is 20%. Select 'Yrs' and the calculator shows how many years that implies at your target rate.

• When you might use it

  This calculator is useful any time you're weighing up where to put your money. Common scenarios include:

  • Choosing between two ETFs, managed funds or individual shares.
  • Comparing a rental property against a share portfolio.
  • Working out whether a renovation will add more value than it costs.
  • Deciding if a small business idea or side hustle is worth the upfront investment.
  • Reviewing a past investment to see how it actually performed.
  • Estimating how long it'll take to grow an investment to a specific dollar value.

• A note on what ROI doesn't show

  ROI is a great starting point, but it's not the whole picture. The calculator doesn't factor in tax, fees, inflation or the level of risk involved in getting that return. Two investments with the same ROI can carry very different risks. a guaranteed 6% from a term deposit is a different proposition to a forecast 6% from a speculative share. Use ROI alongside other measures, and consider speaking with a licensed financial adviser before making large decisions.

Frequently asked questions

• What is a good ROI?

  A good ROI depends on the type of investment, but many investors aim for returns that beat inflation and alternative options.

• What's the difference between ROI and annualized ROI?

  ROI shows total return, while annualised ROI adjusts for time, making it easier to compare investments held over different periods.

• Can ROI be negative?

  Yes. ROI can be negative if your investment loses value. For example, turning $1,000 into $800 results in a -20% return.

• What is the Time needed calculation?

  The calculator’s time feature estimates how long it may take to reach a target return based on your inputs.

• How do I compare two investments?

  Click 'Compare with another investment' to reveal a second column. Enter the cost and return for both investments and the calculator will display which one has a better annualized ROI, along with a summary banner.

• Does ROI account for inflation?

  No, ROI does not account for inflation, so your real return may be lower once rising prices are considered.

Written by

William Capada

Insights Analyst

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William Capada is an insights analyst at Finder. With years of experience as an analyst, he has honed his skills in analysing complex datasets and extracting actionable insights. Proficient in various analytical tools, he has a proven track record of delivering meaningful insights that drive strategic decision-making. William conducts research related to economic data and is also responsible for updating the insights statistics pages. He also assists in ensuring that the scoring makes sense for the Finder Retail Awards. See full bio

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William has written 5 Finder guides across topics including:

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