ROI Calculator Guide: Formula & Worked Example
Short answer
Return on investment and annualized return. In the fixed example below, roi is 50%. Your answer depends on the inputs and assumptions you choose.
Formula
Result = ROI Calculator calculation using amount invested, amount returned, investment length
The inputs are amount invested, amount returned, investment length. Use the input scale shown beside each field and keep time periods and units consistent. Only round the final result for display.
Worked example
- Amount invested
- 10000
- Amount returned
- 15000
- Investment length
- 3
- ROI: 50%
- Gain / loss: 5,000.00
- Annualized return: 14.47%
Understanding the result
Return on investment and annualized return. Start with the base example, then replace each value with the figure that matches your situation.
Amount invested
The example uses 10000 for amount invested. This is an illustration, not a recommended value. Keep the unit and time period shown by the field.
Amount returned
The example uses 15000 for amount returned. This is an illustration, not a recommended value. Keep the unit and time period shown by the field.
Investment length
The example uses 3 years for investment length. This is an illustration, not a recommended value. Keep the unit and time period shown by the field.
What the comparison means
The comparison changes only amount invested, keeping every other example input fixed. This isolates that input's effect on the primary result. It does not predict future outcomes.
Rates, fees, eligibility, local tax rules and provider rounding can change the final amount. Reference tax and exchange-rate data may be outdated; verify the official source before deciding.
Comparison
| Scenario | Input | Result |
|---|---|---|
| Lower input | Amount invested: 8000 | ROI: 87.5% |
| Base example | Amount invested: 10000 | ROI: 50% |
| Higher input | Amount invested: 12000 | ROI: 25% |
Common mistakes
- Using the wrong units for amount invested.
- Comparing results while changing more than one input at a time.
- Rates, fees, eligibility, local tax rules and provider rounding can change the final amount. Reference tax and exchange-rate data may be outdated; verify the official source before deciding.
Checklist
- Confirm amount invested.
- Confirm amount returned.
- Confirm investment length is expressed in years.
- Check the result against your source or provider.
Calculators Percentage Editorial Team
Calculator guides from the Calculators Percentage team. These introductory examples are educational, not professional advice.
Last reviewed:
Rates, fees, eligibility, local tax rules and provider rounding can change the final amount. Reference tax and exchange-rate data may be outdated; verify the official source before deciding.