ROI Calculator UK
ROI Calculator UK
What Is ROI?
ROI (Return on Investment) is a financial metric that measures the efficiency of an investment. It shows how much profit or loss you make relative to the amount invested. This ROI calculator UK helps you calculate your investment returns and compare different investments.
How to Use the ROI Calculator
Enter your initial investment, final value and optionally the investment period. Click Calculate ROI to see your return on investment, profit and annualised return.
How ROI Is Calculated
Annualised ROI = ((Final Value ÷ Initial Investment)^(1/years) − 1) × 100
ROI Example
Example: £10,000 invested, £15,000 final value, 5 years
- Profit: £15,000 − £10,000 = £5,000
- ROI: (£5,000 ÷ £10,000) × 100 = 50%
- Annualised ROI: ~8.45%
Understanding ROI Results
- ROI > 0%: Profitable investment
- ROI = 0%: Break-even investment
- ROI < 0%: Loss-making investment
- Higher ROI: More efficient investment
Annualised ROI vs Total ROI
- Total ROI: Overall return over the entire period
- Annualised ROI: Average annual return (useful for comparing investments with different time periods)
Good ROI Benchmarks
- Savings Account: 0.5-4%
- Bonds: 2-5%
- UK Stocks (FTSE 100): 5-7%
- Global Stocks: 7-10%
- Property: 4-8%
- Startups: 20%+ (high risk)
Common ROI Mistakes
- Not including all costs — include fees and expenses
- Ignoring time — compare annualised returns for different time periods
- Not considering risk — higher ROI often means higher risk
- Ignoring inflation — real ROI is lower than nominal
Important: This calculator provides estimates only. Past performance does not guarantee future results. Always seek professional financial advice.
Important Assumptions and Limitations
- Does not account for inflation
- Does not include fees or charges
- Does not account for taxes on returns
- Results are estimates, not guaranteed
Frequently Asked Questions
For investment planning, visit our Investment Calculator UK. For returns, try our Investment Return Calculator UK.