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ROI Calculator

Return on Investment (ROI) is the single most important metric for evaluating any investment decision - from marketing spend and equipment purchases to property and stocks. ROI = (Net Profit / Cost) × 100. Accountdesq's ROI Calculator also computes annualised ROI (CAGR) for multi-year investments, allowing proper apples-to-apples comparison.

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How it works

Enter the initial investment amount, the total return or final value, and the investment period in years. The calculator shows total ROI %, annualised ROI (CAGR), net profit, and return multiple (e.g. 2.5×). Useful for comparing investments of different sizes and durations.

Investment Details

Common Mistakes to Avoid

  • Ignoring time - a 100% ROI over 10 years is just 7.2% per year annualised
  • Not accounting for risk - higher ROI claims often carry higher risk
  • Comparing ROI across different time periods without annualising

Best Practices

  • Always annualise ROI for fair comparison across different time horizons
  • Include all costs in the initial investment (setup, training, opportunity cost)
  • Set a minimum ROI hurdle rate before approving capital expenditure

Why use this tool?

Without ROI analysis, you can't prioritise which investments to make. A marketing campaign with a 200% ROI in 3 months is far superior to a property with a 50% ROI over 10 years - even if the absolute profit is larger.

Frequently Asked Questions

Return on Investment (ROI) measures the profitability of an investment relative to its cost. ROI = (Net Profit / Cost of Investment) × 100.

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Disclaimer: Accountdesq provides this ROI Calculator for informational and convenience purposes only. Output is not a substitute for professional accounting, legal, or tax advice. No data entered is transmitted to or stored on our servers - all calculations happen locally in your browser. Accountdesq accepts no liability for errors in generated documents. Always consult a qualified accountant or tax professional for compliance matters.