ROI calculator
Enter what you put in and what you got back to see your return on investment, and add how long you held it for the annualized rate. Works for flips, side projects and investments.
- Returned
- $1,500.00
- Invested
- −$1,000.00
- Gain
- $500.00
- ROI
- 50.00%
- Annualized ROIover 2 years
- 22.47%
ROI = (returned − invested) ÷ invested. Annualized ROI spreads it over the years held, compounding, so 50% over two years is about 22.5% a year, not 25%.
ROI for resellers
For a flip, count the platform's fees in the return, not just the sale price. An item bought for $20 and sold for $50 looks like 150% ROI, but after eBay's fees and $8 shipping you may get back closer to $34, which is 70%. Use the eBay profit calculator to get the real number to put here.
Formulas
ROI = (returned − invested) ÷ invested × 100. Annualized ROI = (returned ÷ invested)^(1 ÷ years) − 1.
Questions
How do I calculate ROI?
Subtract what you invested from what you got back, divide by what you invested and multiply by 100. Invest $1,000, get back $1,500: $500 ÷ $1,000 = 50% ROI.
What is annualized ROI?
The yearly rate that would grow your investment to the same amount over the same time, with compounding. 50% over two years is about 22.5% a year.
What should I count as invested?
Everything you spent to get the return: the purchase price, fees, shipping, repairs and supplies. Leaving costs out makes ROI look better than it is.
What's a good ROI for reselling?
It depends on how long your money is tied up. A 30% ROI on an item that sells in a week is better than 60% on one that sits for a year.
Can ROI be negative?
Yes. If you get back less than you put in, ROI is negative: invest $1,000 and get back $800 and ROI is −20%.
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