Return on Investment calculator

How to calculate it

Total cost = initial investment + extra costs. Net return = money received − total cost. ROI = net return ÷ total cost × 100.

Worked example

Spending 2,000 initially plus 100 in other costs and receiving 2,700 gives a net return of 600 and a simple ROI on total cost of 28.57%.

Results are estimates. Check your inputs and account for any costs not included before making financial decisions.

Define the return before comparing projects

Money received means total proceeds, including any returned initial capital. Enter the initial outlay and extra costs separately, without counting the same cost twice. ROI here divides the net return by the total amount spent, so extra costs affect both the numerator and denominator.

A return is not an annual rate

A 20% return over three years cannot be compared directly with a 20% return over three months. This tool does not annualise returns or discount cash flows. It also cannot estimate risk, taxes, borrowing costs or the chance of a project failing.

Compare consistent totals

A project costing 2,000 plus 100 in other costs and returning 2,700 produces a net gain of 600. Its ROI on total cost is 600 ÷ 2,100 × 100 = 28.57%. Pin it and change the proceeds to 1,800 to see a loss of 300 and an ROI of −14.29%.

Planning estimate only. Check all costs, tax treatment and your actual circumstances. Calculation and rounding notes.