Free Tools
ROI Calculator
Calculate your return on investment (ROI) to measure the profitability of your investments, projects, or business decisions.
Return on Investment Calculator
ROI measures the efficiency of an investment by comparing the gain or loss relative to its cost. Use this calculator to determine your ROI percentage and net profit.
The amount you initially invested
The current or final value of your investment
Used to calculate annualized ROI
Any additional fees, taxes, or costs associated with the investment
ROI Results
Additional Metrics
Note: ROI is a simple metric and doesn't account for time value of money or risk. For complex investments, consider consulting with a financial advisor.
Investment Comparison
What is ROI (Return on Investment)?
Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment. It compares the gain or loss from an investment relative to its cost.
ROI Formula:
ROI = ((Final Value - Initial Investment) / Initial Investment) × 100%
How to Interpret ROI:
- Positive ROI: Your investment generated a profit
- Negative ROI: Your investment resulted in a loss
- Higher ROI: Generally indicates a more profitable investment
- ROI of 0%: You broke even (no profit, no loss)
When to Use ROI:
- Comparing different investment opportunities
- Evaluating project profitability
- Assessing marketing campaign effectiveness
- Measuring business performance
- Making investment decisions
Limitations of ROI:
- Doesn't account for the time period (use annualized ROI for comparisons)
- Doesn't consider risk or volatility
- May not reflect opportunity costs
- Can be manipulated by how costs are calculated
Frequently Asked Questions:
What is a good ROI?
A good ROI depends on the investment type and time period. For stocks, 7-10% annually is considered good. For real estate, 10-15% is typical. Compare ROI to benchmarks relevant to your investment.
How do I calculate annualized ROI?
Enter your investment period in the calculator, and it will automatically calculate annualized ROI, which adjusts for the time period to make comparisons fair.
Can ROI be negative?
Yes, ROI can be negative if your final value is less than your total investment. This indicates a loss on your investment.