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Provense. Online Accountants

ROI calculator

Work out the return on an investment — as a percentage and a cash gain — with an optional annualised figure when you add a time period.

Your figures

What you put in.

What it’s worth now, or what you got back in total.

Add this to see the annualised return. Leave at 0 to skip.

Your result

Return on investment

0%

 

Amount invested
£0
Final value
£0
Net return
£0
ROI
0%
Keep more of your return

A simple ROI estimate based on the figures you enter. It doesn’t account for tax on your gain, inflation or risk — useful context we factor in when advising on real investments.

Return on investment turns a gain into a percentage you can compare across very different opportunities. Enter what you put in and what came back to see your ROI and cash profit — and add a time period to see the annualised return, which is what really lets you compare a quick win against a long hold.

The ROI formula

ROI is one of the simplest and most useful numbers in business:

ROI = (Final value − Investment) ÷ Investment × 100

Because it’s a percentage, you can use it to compare a marketing campaign, a piece of equipment and a share purchase on the same scale — as long as you remember a higher return almost always carries higher risk.

Total return hides time

A 50% total return looks identical whether it took one year or ten — but they’re worlds apart. Over one year it’s a 50% annual return; over ten it’s about 4% a year, barely beating inflation.

That’s why the annualised figure matters whenever you’re comparing opportunities of different lengths. When tax comes into it — Capital Gains, dividends or Corporation Tax on the gain — our tax planning helps you keep more of the return.

In plain English

The terms, explained

New to this? Here’s what the words on this page actually mean.

Investment
The amount you put in — the cost of the investment or project.
Final value
What it’s now worth or what you got back in total, including your original stake.
Net return
The cash gain — final value minus what you invested.
ROI
Net return as a percentage of the investment. A £200 gain on £1,000 is a 20% ROI.
Annualised ROI
The return expressed as a steady yearly rate, so investments held for different lengths of time can be compared fairly.
FAQ

ROI calculator — your questions answered

How do I calculate ROI?
Subtract the amount you invested from the final value to get your net return, divide that by the investment and multiply by 100. For example, turning £1,000 into £1,250 is a £250 gain, and £250 ÷ £1,000 = 25% ROI. Enter your figures above for the answer.
What is a good ROI?
It depends entirely on the risk and time involved. Long-term stock-market returns average roughly 7–10% a year, so a business project returning well above that is attractive — but a higher ROI usually means higher risk. For a one-off project, compare it against what the same money could earn elsewhere.
What is annualised ROI and why does it matter?
A 50% return sounds great, but over ten years it’s only about 4% a year. Annualised ROI converts a total return into a steady yearly rate so you can compare investments held for different lengths of time on a level footing. Add a period in years above to see it.
Does ROI account for tax?
No — this is a pre-tax figure. A real return may be reduced by Capital Gains Tax, dividend tax or Corporation Tax depending on how the investment is held. Factoring tax into investment and extraction decisions is part of what our tax planning does.
What’s the difference between ROI and profit margin?
Profit margin measures profit against sales; ROI measures gain against the money invested. Margin tells you how profitable each sale is, ROI tells you how hard your capital is working — they answer different questions.
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