An easy to use ROI calculator you can use to learn the expected return on investment over time - usually years. This free ROI calculator calculates both overall ROI and annualized ROI . ROI formula , examples for calculating return on investment , calculating annualized return, and more. Return on Investment ( ROI ) is a measure that is used to estimate the amount of profit that can be earned or has been earned from the different types of investments. ROI Formula The Return on Investment formula offers a clear path to assess an investment 's performance. It can be calculated as Return On Investment = (Net Return / Cost of Investment ) × 100 The numerator, the net return obtained by subtracting the investment cost from either gross returns or total exit proceeds, encapsulates the total profits received. In contrast, the denominator, the cost of the investment , signifies the total amount spent by the investor. Expressed as a percentage, this ... Learn how to calculate ROI using four methods: net income, capital gain, total return, and annualized return. See the factors, importance, and examples of ROI for different types of investments.