Accurate ROI Calculator
For reference, per the Wall Street Journal, the U.S. S&P 500 index gained about 25% in 2023.
This ROI calculator (return-on-investment) calculates an annualized ROR (rate-of-return) using exact dates. This financial calculator allow you to compare the result of different investments. More below
Information
To Quickly
Pick a Date
As a side benefit of this calculator's date accuracy, you can also use it to do date math calculations. That is, it will find the date that is "X" days from the start date or given two dates, it will calculate the number of days between them.
Calendar Tip: When using the calendar, click on the month at the top to list the months, then, if needed, click on the year at the top to list years. Click to pick a year, pick a month, and pick a day. Naturally, you can scroll through the months and days too. Or you can click on "Today" to quickly select the current date.
If you prefer not using a calendar, single click on a date or use the [Tab] key (or [Shift][Tab]) to select a date. Then, as mentioned, type 8 digits only - no need to type the date part separators. Also, because the date is selected, you do not need to clear the prior date before typing. If your selected date format equals mm/dd/yyyy, then for March 15, 2023, type 03152023.
Recent: Your desired ROR
At some point, a user might need to know what they should pay for an investment to achieve a desired return-on-investment. Or what they need to sell it for if they have already entered into the invesetment.
With the most recent update, this calculator can now perform either calculation. All the user need do is provide the goal ROI (and click "Calc" to update). The calculator calculates the adjustment amount required for both the initial investment and the final value. It also calculates the absolute amount for both.
To double-check the accuracy of the results, copy and paste the value into the appropriate location and recalculate. The ROI should now equal your goal ROI (plus or minus a minimal rounding amount).
And now for an essential word about ROI/ROR financial calculators.
Because two different calculators may use different equations, don't compare the results from one ROI calculator for one investment with results from another calculator for a different investment. Always use the same calculator to compare two different investments.
What is ROI?
ROI or return-on-investment is the annualized percentage gained or lost on an investment (ROR, or rate-of-return is the same calculation).
Enter the "Amount Invested" and the date the investment was made ("Start Date"). Enter the total "Amount Returned" and the end date.
You can change the dates by changing the number of days. Enter a negative number of days to adjust the "Start Date". Or as you change a date the "Number of Days" will update.
The results include the percentage gained or loss on the investment as well as the annualized gain or loss also expressed as a percent. The annualized return can be used to compare one investment with another investment.
Example: If you bought $25,000 worth of your favorite stock on January 2nd 2024 and sold it for $33,000 on June 7th 2025, you would gain $8,000 which is 32%. The annualized gain is 21.4%.
Now, let's say you made a second investment on January 2nd, 2024. This time, it was for $10,000, and you sold it for $11,000 on March 1st, 2024 (a leap year). The gain is only $1,000 or 10%. However, the annualized gain is 82.3%. Ignoring risk (which can be very dangerous), one would generally consider the latter investment to be better than the former.
Sarper says:
I want to invest 6000000 USD for a lab. The estimated net income is 50000nUSD/month for the first year, 100000 USD/month for the second year, 200000 USD/month for the third year and will be around this amount/month for the next 5 years. Which formula is needed to see whether this is a profittable investment and how can I play around with time and amount of money invested to make sure the investment is profitable
Karl says:
Please use the irr calculator here. It will allow you to enter multiple cash flows.
ShortGuy says:
When using the calcualtor for the following data, I receive an answer of 144% yet, when I calculate using ((SalePrice/PurchasePrice)/PurchasePrice)/NumDays*365 I get 91.6643% which seems reasonable.
Purchase Price 123/25
Sale Price 129.75
Days in trade 21
Where did I go wrong, or is my understanding of the calculator’s purpose wrong?
Thanks
Karl says:
The ROI is an annualized rate of return. This means the calculator assumes you will get the same results from your investment for an entire year AND that the funds are left invested for the year.
The equation you are using does not allow for the reinvestment of the gain.
Here’s what I mean (with some rounding for simplicity). Using your example, the gain is $6.50 or a gross return of 5.3% over the 21 days. There are about 17.4 investment periods of 21 days in the course of a year. 17.4 periods * 5.3% gain = 91.6%. Thus this result assumes that the $6.50 profit is withdrawn from the investment at the end of 21 days.
Akinlolu Akinsanya says:
I am investing $325,537 (equipment) that will provide savings of $64,800 per year.
The equipment is expected to last for 20 years. This means for all 20 years my total savings will be $1,296,000.
Question
1. Do I have to enter $1,296,000 in the “amount returned” section?
2. Will the date be a range of 20 years?
3. Will the “amount invested” be $325,537?
Thanks
Karl says:
Since you, in essence, have cash flows and since money changes value over time, I think you should use this internal rate of return calculator. IRR is an ROI calculation that allows for cash flows.
I would enter -325,537 as the initial investment (thus negative) and then you can use the copy feature to enter 64,800 (positive) for each year for 20 years. For the final value at the end of the 20 years, you might also want to enter the amount you think you’ll be able to sell the equipment for since that would also represent a return.
If you have questions, you can ask them at the bottom of the above-linked page.
Saad Shafique says:
Hi,
When using the option to calculate selling a put call option I get a different result then using other roi calculators (ex. https://www.calculator.net/roi-calculator.html)
If I sold the put tying up $2100 collected $13 after expiration (considering it expire worthless) I keep the $13.
Amount Invested (PV)?: $2100.00
Amount Returned (FV)?: $2113.00
Days (-9,999 < # 1969)?: Aug 3, 2021
End Date (year < 2100)?: Aug 6, 2021
Karl says:
Hi, so what’s your question? You made $13 in 3 days on a $2,100 investment. The result is an annualized rate of return of about 111%.
Karl says:
It seems the other calculator is not taking into account reinvestment of the gain. An annualized rate of return should assume (to my way of thinking) that the gain is reinvested (or left in the investment). Using your example, the next investment amount would be $2113 (reinvesting the gain), and if you do this for a year, you’ll have a return of about 111%. And the next investment will be for $2126.?? and some change for the slightly higher gain for the second trade. That is the gain the 2nd time will not be $13, but $13 and some cents on the $2113 investment.
But, on a more important note, an ROI calculation is used to compare different investments, and if you are using it for that purpose, it’s important to use the same calculator (and you can see why).
Karl says:
One more thing, I believe I must have misunderstood what you meant.
You said you sold a put call option. I took that to mean you were short, that is, that you sold it first. But now I think you must have meant you bought either an option and then sold it. In that case, the amount invested, I guess, would be $2,100 and the amount returned would be just the $13.
Your post is a little unclear, particularly since you didn’t even ask a question.