ROI Calculator for Excel
Calculate return on investment, net gain, and annualized return, then copy the same logic into Excel. Cash income is kept separate from the ending asset value.
Written and checked by TheToolNet Editorial Team · Last reviewed: September 27, 2026 · Editorial method
If initial cost is B2, ending value B3, and income B4, use =(B3+B4-B2)/B2 and format the result as a percentage.
Calculate ROI for an Excel worksheet
Worksheet layout
| Cell | Label | Formula or entry |
|---|---|---|
| B2 | Initial cost | 10000 |
| B3 | Ending value | 12000 |
| B4 | Cash income | 500 |
| B5 | Years | 2 |
| B6 | Total ROI | =(B3+B4-B2)/B2 |
| B7 | Annualized return | =((B3+B4)/B2)^(1/B5)-1 |
Total ROI and annualized return are different
Total ROI measures gain across the whole holding period. Annualized return converts the beginning-to-ending multiple into an equivalent yearly compounded rate. Two investments with the same total ROI can have very different annualized returns when held for different lengths of time.
When this simple formula is not enough
If deposits, withdrawals, and income occur on many dates, combining them at the end distorts timing. Use Excel's XIRR with dated cash flows instead. If you only need beginning value, ending value, income, and fees, use the total return calculator.
Frequently asked questions
Should costs and fees be included?
Yes. Include acquisition costs in initial cost and subtract selling or management costs from ending value or income.
Can ROI be negative?
Yes. A negative result means the ending value plus cash income is below the initial cost.