Free Online ROI Calculator for Smarter Investment Decisions

ROI measures total return over the full investment period as a percentage of the amount invested. CAGR converts that return into an equivalent yearly compounded rate. For a 2-year investment with 40% total ROI, the CAGR will be 18.32% - not 20% - because compounding is factored in. Use ROI to measure overall profitability and CAGR to compare investments held for different durations.

Yes. Enter your total campaign spend as the amount invested and the revenue attributed to that campaign as the amount returned. For a 3-month campaign, enter the duration as 0.25 years. The result shows your return on marketing spend as a clear percentage.

Enter the duration as a decimal. Six months is 0.5, three months is 0.25, and two months is approximately 0.17. The calculator handles sub-year periods correctly for both annualised ROI and CAGR.

ROI measures return relative to the capital invested. Profit margin measures net profit relative to revenue. A business can have a high profit margin but a low ROI if the capital required to generate that revenue is very large. ROI is more useful for evaluating investment efficiency; profit margin for evaluating operational efficiency.

ROI gives a total or annualized return based on a single entry and exit point. IRR (Internal Rate of Return) handles multiple cash flows at different points in time and finds the rate at which net present value equals zero. For investments with a single inflow and a single outflow, ROI and CAGR are sufficient. For projects with staged payments or multiple income events, IRR is more precise.

Not necessarily. ROI does not account for risk, liquidity, or the time value of money on its own. A 30% ROI on a speculative investment may be less attractive than a 12% ROI on a stable, low-risk asset. Always consider ROI alongside risk level, investment horizon, and your broader financial goals.

Yes. Use the purchase price or NAV as the amount invested, the current value or sale price as the amount returned, and the holding period in years. The CAGR result matches the annualized return format used in fund fact sheets, making comparisons straightforward.

It works for a straightforward purchase-and-sale calculation. Enter the total acquisition cost, including purchase price, registration, and renovation, as the amount invested and the sale price as the amount returned. To include rental income, add cumulative rent received to the sale price before entering it. Note that this does not account for capital gains tax or exit costs.

No. The calculator runs entirely in your browser. No data is saved, shared, or linked to any account. It is free to use without logging in.

BUSY tracks all your income, expenses, and capital deployed across projects and business units. You can take actual figures from your BUSY books - project costs, revenue received, capital invested - and feed them directly into this calculator to measure verified business ROI. This is especially useful for deciding which product lines, branches, or projects are worth reinvesting in.