ROI Calculator

About ROI (Return on Investment)

ROI measures the efficiency of an investment by comparing the profit or loss relative to the cost of investment.

ROI Formula

• ROI = (Final Value - Total Investment Cost) ÷ Total Investment Cost × 100%
• Annualized ROI = ((Final Value ÷ Total Cost)^(1 ÷ Years)) - 1) × 100%

Calculation Types

• Basic ROI: Simple percentage return with optional time period
• Annualized ROI: Annual return rate using specific dates
• Simple Analysis: Basic profit/loss without time considerations

How to Use

1. Choose your calculation type
2. Enter initial investment amount
3. Enter current or final value
4. Add any additional costs (fees, commissions)
5. For time-based analysis, enter dates or time period
6. Click Calculate to see detailed ROI analysis

ROI Interpretation

• Above 20%: Excellent return - significantly above market average
• 10-20%: Good return - above market average
• 5-10%: Moderate return - around market average
• 0-5%: Low return - below market average
• Negative: Loss - investment lost money

Important Considerations

• ROI doesn't account for time value of money (use NPV for that)
• Higher ROI may involve higher risk
• Compare with relevant benchmarks and inflation
• Consider all costs including taxes and fees
• Past performance doesn't guarantee future results

Applications

• Stock and bond investments
• Real estate investments
• Business project evaluation
• Marketing campaign effectiveness
• Equipment and technology purchases

Try Sample Calculation

Click "Load Sample" to see typical ROI calculations with example values.