Free ROI & Break-even Calculator

Calculate return on investment with an optional annualized rate, or the units you must sell to break even.

$500.00
Net profit
50%
Return on investment

How to use / FAQ

Two calculators in one. Use ROI mode to see the net profit and return on an investment — add a holding period to get the annualized rate. Switch to Break-even mode to find how many units you need to sell to cover your fixed costs, given your price and per-unit cost.

How is ROI calculated?

Return on investment is your net profit divided by the amount you invested, expressed as a percentage. If you put in $1,000 and got back $1,500, the net profit is $500 and the ROI is 50%. It measures how efficiently the money worked, independent of the amount.

What is annualized ROI and why does it differ?

A 50% total return over five years isn't the same as 50% a year. Annualized ROI converts the total return into the equivalent compound yearly rate — about 8.45% a year in that example — so you can compare investments held for different lengths of time on a level footing.

How does the break-even calculation work?

Each unit you sell contributes its price minus its variable cost toward covering your fixed costs — that's the contribution margin. Break-even units are your fixed costs divided by that margin, rounded up to the next whole unit. Below that price contributes nothing, so break-even is impossible until the price rises above the variable cost.

Are taxes or financing costs included?

No. These are simplified pre-tax calculations that ignore taxes, fees, and the timing of cash flows. Use them for quick comparisons and back-of-the-envelope planning rather than formal accounting.