ROI Calculator
Calculate return on investment (ROI) percentage and profit. Perfect for evaluating investments, business decisions, and financial performance.
What is ROI?
ROI (Return on Investment) is a financial metric used to measure the profitability of an investment. It expresses the return as a percentage of the initial investment, making it easy to compare different investment opportunities.
ROI is calculated by dividing the profit (or loss) from an investment by the initial investment amount, then multiplying by 100 to get a percentage. A positive ROI indicates a profitable investment, while a negative ROI indicates a loss.
How to Use the ROI Calculator
- Enter initial investment: Input the amount you initially invested or spent.
- Enter final value: Input the current value or return from the investment.
- Calculate: Click "Calculate ROI" to see your return on investment percentage and profit/loss.
Understanding ROI
Positive ROI
A positive ROI means your investment has generated a profit. The higher the percentage, the better the return.
Negative ROI
A negative ROI indicates a loss on your investment. This means the final value is less than your initial investment.
Comparing Investments
ROI allows you to compare different investments on an equal basis, regardless of the initial investment amount.
Time Consideration
This calculator shows simple ROI. For investments over time, consider annualized ROI which accounts for the time period.
Frequently Asked Questions
What's a good ROI?
A good ROI depends on the type of investment and risk level. Generally, 7-10% annual ROI is considered good for stocks, while higher returns may come with higher risk.
Does ROI account for time?
This calculator shows simple ROI which doesn't account for time. For investments over different time periods, use annualized ROI to make fair comparisons.
Can ROI be negative?
Yes, ROI can be negative if the final value is less than the initial investment, indicating a loss on the investment.
What costs should I include?
Include all costs associated with the investment in your initial investment amount, including fees, commissions, and other expenses, for an accurate ROI calculation.
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