ROI Calculator - DigiKitApp

Calculate return on investment and annualized return.

When should you use this?

Use this when you need to calculate the return on an investment or marketing campaign, the ratio of gain to what was spent.

When shouldn't you use this?

An ROI calculation is only as accurate as the numbers you enter; leaving out indirect costs (time, labor) can make it show profitability higher than it really is.

Step-by-step

Enter everything you spent in Initial investment. Include fees, setup costs and ad spend, not just the purchase price.
Put the current value, or the total you got back at the end, into Final value.
Enter how long you held the investment in Years. For less than a year, use a decimal like 0.5.
Click Run and read the total return alongside the annualized figure.

Example

You put 10,000 into something two years ago and it's now worth 15,000. Total ROI is 5,000 divided by 10,000, so 50 percent. Spread over two years, though, the compound annual return is about 22.5 percent, not 25, because the second year's growth builds on the first year's gain. When two investments ran for different lengths of time, the annualized number is the fairer comparison.

How is return on investment (ROI) calculated?

ROI shows, as a percentage, how much an investment earned relative to its cost. The formula is (Gain − Cost) ÷ Cost × 100. For example, if you spend 10,000 and get back 12,500, ROI is 25%. ROI is a quick comparison measure but it ignores time and risk.

When interpreting ROI

Time matters: 25% in one year is not the same as 25% in five years; annualised return should be calculated separately.
Include all costs (fees, tax, maintenance) or ROI looks higher than it is.
When comparing investments use the same period and cost scope.
Past returns do not guarantee future returns; this tool is not financial advice.

Things to keep in mind

Inflation isn't factored in. In a high-inflation period a strong nominal return can still mean little or no gain in real purchasing power.
If you added money or took out profits along the way, this simple formula won't be exact. Track each cash flow separately in that case.
Subtract taxes and exit fees from the final value. What you actually keep after selling is what counts.
Past returns say nothing certain about future ones. For a major decision, talk it through with a financial adviser.

Frequently asked questions

How accurate are the results?

Calculations use standard mathematical formulas; for official purposes (tax, loan applications, etc.) we recommend confirming current rates with the relevant institution.

Are the numbers I enter saved?

No, no numbers are sent to a server; the calculation happens entirely in your browser.

Can I use this on mobile?

Yes, the tool works smoothly on all screen sizes.