Should ROI include fees?

Yes. Add transaction costs, platform charges and any maintenance spending to the amount invested, otherwise the return is overstated.

Yes — a final value below the cost gives a negative percentage, which is simply the proportion of capital lost.

Is ROI the same as profit margin?

No. Profit margin measures profit against revenue for a business; ROI measures gain against the capital deployed.

ROI Calculator

Return on investment expresses profit as a percentage of what you put in, which makes investments of different sizes directly comparable. The annualised figure adjusts for how long the money was tied up.

Fill in the fields above and select Calculate to see your result and the full working.

Please note: Financial calculators produce estimates using the figures you enter. They exclude fees, taxes, insurance and rate changes unless a field asks for them. They are not financial advice — confirm any significant decision with a qualified adviser or your lender.

Formula used

ROI = (final value − cost) ÷ cost × 100. Annualised return = ((final ÷ cost)^(1/years) − 1) × 100

How to use this calculator

Enter the total amount invested, including fees and any follow-on capital.
Enter the final value or the amount you received back.
Add the holding period in years to see the annualised figure.
Compare the annualised return, not the raw ROI, when investments ran for different lengths of time.

Example calculation

$10,000 invested, worth $13,500 after 3 years:

Gain = $3,500 → ROI = 3,500 ÷ 10,000 = 35%

Annualised = (1.35^(1/3) − 1) = 10.52% a year.

What does this result mean?

A 35% total return sounds impressive until you learn it took ten years, which works out at just 3% a year. The annualised number, also called CAGR, is the honest basis for comparison. Neither figure accounts for risk: a volatile investment and a savings account with the same return are not equivalent.

Frequently asked questions

Should ROI include fees?: Yes. Add transaction costs, platform charges and any maintenance spending to the amount invested, otherwise the return is overstated.
Can ROI be negative?: Yes — a final value below the cost gives a negative percentage, which is simply the proportion of capital lost.
Is ROI the same as profit margin?: No. Profit margin measures profit against revenue for a business; ROI measures gain against the capital deployed.

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