MONEYRADAR / Free tool
ROI and payback period
Estimate simple annual return on an investment and approximate payback time assuming constant profit.
How the calculation works
Annual ROI = annual net profit / initial investment × 100%. Payback in months = initial investment / (annual profit / 12).
Worked example
Example: an initial investment of 10,000 and annual profit of 2,400 give annual ROI of 24% and a simple payback period of 50 months.
Understanding the result
Payback assumes stable positive profit. A loss produces a negative ROI, but the payback period is not calculated.
Limits and assumptions
Inflation, the time value of money, changing profit and additional investments are excluded. This calculation is not a return forecast.
Related reading
Calculations run in your browser and are not personalised financial advice.