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Business ROI Calculator

Annualised, and with a present value beside it.

Written and maintained by Mohit PatelLast checked August 4, 2026How we build these
%

Total ROI

10%

3.2% annualised

Total return$66,000
Net gain$6,000
Annualised return3.2%
Net present value−$7,160

Total ROI over 3.0 years is 10%, which annualises to 3.2%. Quoting the total without the period is how modest investments get presented as exceptional ones.

How the Business ROI Calculator works

Quoting total ROI without the period is how modest investments get presented as exceptional ones. A 60% return over three years annualises to under 17%, which is a different conversation entirely.

Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.

Frequently asked questions

How is ROI calculated?

Net gain divided by investment. Annualising it — taking the nth root over n years — is what makes returns comparable across different time periods.

What is net present value?

Future returns discounted back to today at your cost of capital, less the investment. A positive NPV means the project beats the alternative use of the money.

Which should I use?

NPV for deciding whether to proceed, annualised ROI for comparing options, payback period for checking you can survive the wait. They answer different questions.

What discount rate is appropriate?

Your cost of capital, or the return available on the next best use of the money. For a small business that is often the return the business itself generates.

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