Simple return comparison
Return on investment (ROI) calculator
Calculate net gain and simple, non-annualized ROI from your entered total cost and value or benefits.
Estimate simple return on investment (ROI) from a total cost and the value or benefits received over a period you specify. Choose a consistent cost and return definition for the decision you are evaluating. This calculator does not forecast performance or recommend an investment.
Enter total cost and total value or benefits, then calculate.
Formula: net gain = value or benefits − total cost. Simple ROI = net gain ÷ total cost × 100. The period label is for context only: this result is not annualized, and it does not account for the timing of interim cash flows.
Choose a consistent cost and return
Use the cost field for the complete amount you want included in the denominator. Put the total value or benefits received in the second field. If you are evaluating a sale, this may be sale proceeds; if you are evaluating a project, it may be the benefits you have defined. Include relevant fees, operating expenses, financing costs, taxes, and other amounts in your chosen inputs where appropriate. The result depends on those definitions, so it is not comparable across cases unless the periods and included items are consistent.
The Corporate Finance Institute's published illustration uses a property valued at $500,000 and sold two years later for $1,000,000. Under that simplified example, gain is $500,000 and ROI is 100%: ($1,000,000 − $500,000) ÷ $500,000. The source notes that the example leaves out possible maintenance, property tax, sale, and legal costs, so it is not a complete net-return estimate. This page checked the source on November 3, 2026.
Corporate Finance Institute: Return on Investment formula, example, and limitations (published February 27, 2020).
What simple ROI leaves out
- Time: the percentage is not annualized; the same ROI over different periods does not represent the same pace of return.
- Cash-flow timing: this simple formula treats the entered totals as one comparison and does not model when costs or benefits occur.
- Risk and uncertainty: a past or entered result does not predict future value, returns, or loss.
- Tax and financing treatment: include them only if appropriate for your calculation, and apply the same definitions to each option.
For comparisons, use the same measurement period and cost definitions for every option. A negative net gain produces a negative ROI. This educational calculator is not personalized financial, tax, or investment advice.
How it works
Enter a total cost, the total value or benefits received, and an optional label for the period. The calculator reports net gain and simple ROI without annualizing the result.
Good to know
What formula does this ROI calculator use?
It subtracts total entered cost from total entered value or benefits to find net gain, then divides net gain by cost and multiplies by 100 for simple ROI. The result depends on what you include in those two inputs.
Is the ROI annualized?
No. The period label is context only. This tool does not model interim cash-flow timing or annualize results; compare options over consistent periods and with consistent cost definitions.
Does this predict investment performance or include every cost?
No. Enter relevant costs and benefits for your own analysis. The result is not a forecast or recommendation, and taxes, financing, fees, and operating costs are included only if reflected in your inputs.
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