Free Financial Tool

    ROI Calculator

    Calculate return on investment with the metrics professionals actually use — total ROI, annualized ROI, IRR, NPV, and payback period — plus sensitivity analysis to show which assumptions matter.

    Investment details
    Results update as you type.
    $

    One-time cost paid at the start

    $

    Setup, training, migration — also paid at the start

    $

    Net cash benefit per year (before taxes)

    %

    Your cost of capital — used for NPV (10% is a common default)

    This investment creates value: IRR of 17.0% beats your 10% required return.

    In today's dollars it adds $14,770 of value (NPV) over 5 years.

    • Payback in 3.2 years
    • Net gain of $45,000 over 5 years
    • Most sensitive assumption: annual return — pressure-test it first

    Total ROI

    56.3%

    Excellent over 5 years

    IRR

    17.0%

    Annual rate accounting for time value of money

    NPV

    $14,770

    At a 10% discount rate

    Payback period

    3.2 yrs

    38.4 months

    Summary
    Total costs$80,000
    Total returns$125,000
    Net gain / loss$45,000
    Annualized ROI (simple)11.3%

    This investment’s IRR of 17.0% exceeds your 10% discount rate — it clears your required return.

    Sensitivity analysis
    Impact on net gain when each input changes by ±10%, holding everything else constant. Longer bars = assumptions worth validating first.
    $32K$39K$45K$52K$58KAnnual returnInitial investmentAdditional costs
    input −10% input +10%Base net gain: $45K
    How this calculator works

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