ROI and Payback Calculator
Calculate ROI, net return, annualized ROI, return multiple, and payback period with transparent formulas.
What this tool can do
Calculate return on investment. Show net return and return multiple. Annualize a multi-year return. Estimate payback in years and months.
Formula and methodology
ROI = (final value − initial investment) ÷ initial investment × 100.
Worked example
A €10,000 investment returning €14,000 has a €4,000 net return and 40% ROI.
Define return consistently
Use a final value or cash return that covers the same period and scope as the initial investment.
ROI does not show every risk
ROI is a planning ratio. Timing, uncertainty, financing costs, and cash-flow volatility can materially change the decision.
Privacy
Calculations and draft documents run in your browser. Entered values are not included in FollowIncome analytics events.
Next step
Use the result as a planning aid, then track actual invoices, payments, expenses and projects in FollowIncome.
Frequently asked questions
What is a good ROI?
It depends on time, risk, alternatives, and the costs included. Compare like-for-like opportunities rather than using one universal threshold.
How is annualized ROI calculated?
The calculator uses the compound annual growth rate between initial investment and final value over the selected years.
What is payback period?
It is the estimated time for recurring cash flow to recover the initial investment.
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