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Finance

ROI (Return on Investment) Calculator

Enter what you paid (cost), what it's worth or sold for (final value), and how long you held it. The calculator returns the absolute profit, ROI %, money multiple and an annualised (compounded) return so you can compare investments of different lengths fairly — gaining 50% over three years is very different from 50% over five.

ROI (total return)

Net profit

Annualised return

Money multiple

ROI is the total return over the entire holding period; annualised return assumes profit compounds evenly so you can compare investments of different lengths. Fees, taxes and inflation are not included.

Formula

ROI (total return) = (final value − cost) ÷ cost × 100% Money multiple = final value ÷ cost Annualised return = ((final value ÷ cost)^(1 ÷ years) − 1) × 100%

Frequently asked

What is the difference between ROI and annualised return, and which one matters?

ROI is the total percentage return over the entire holding period — a 100% ROI looks great, but if it took 20 years to achieve, the annualised return is just 3.53%, which can lose to a bank time deposit. The annualised number expresses the same outcome as a per-year compounded rate, so it lets you compare investments with different time horizons on equal footing. Use ROI when you want a simple 'how much did I make' on a single deal; use annualised return when you want to compare options.

How do I calculate ROI for a property investment?

Two common approaches. First, pure capital gain: treat the net sale proceeds (after agency commission, stamp duty and mortgage payoff) as the final value, and your out-of-pocket cost (down payment + stamp duty + legal fees + renovation) as the cost. Second, total return including rent: add net rental income received over the holding period (after mortgage interest, management fees, rates and vacancy) to the final value. In Hong Kong, buying-side AVD and selling-side commission can eat 5–8% off ROI, so include them. If you used a mortgage, base ROI on the cash you actually put in (the down payment plus fees), not the headline price — leverage amplifies both gains and losses.

Should I include fees, taxes and dividends in the ROI calculation?

Yes — to get a realistic 'net ROI' you should fold transaction costs into the inputs. Add buy-side fees (brokerage commission, stamp duty, levies) to the cost; subtract sell-side fees and any applicable capital gains tax from the final value. If dividends were reinvested, they are already in the final value; if they were taken in cash, add the cumulative dividends received to the final value, then subtract any dividend tax. Hong Kong stocks have round-trip transaction costs of roughly 0.2–0.6% in total, which is small but compounds with frequent trading. The calculator doesn't track these separately, so bake them into the two amounts you enter.

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