Finance

ROI Calculator

Measure return on investment, net profit, and return multiple from your investment cost and final value.

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Enter investment and final value to calculate ROI.

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ROI Formula Explained

Return on investment tells you how efficiently your money generated profit. It compares net profit to the initial investment.

ROI = ((Revenue - Investment) / Investment) x 100

Example: (($6,500 - $5,000) / $5,000) x 100 = 30%

What is ROI?

Return on investment (ROI) is a performance measure used to evaluate how efficiently an investment generates profit relative to its cost. It is expressed as a percentage and helps investors and business leaders compare different investment opportunities on the same scale.

Whether you’re evaluating a real estate property, a business venture, stock portfolio, or marketing campaign, ROI gives you a standardized way to understand profitability. A 30% ROI means that for every dollar invested, you get $0.30 in profit.

Frequently asked questions

What is a good ROI?
A good ROI depends on your industry, risk level, and time horizon. Higher-risk projects usually require a higher target ROI.
Can ROI be negative?
Yes. If your final value is lower than your investment cost, net profit is negative and ROI will be below 0%.
Does ROI include time?
Basic ROI does not account for the time value of money. For time-sensitive comparisons across different investment durations, pair ROI with annualized return or IRR.
What is the difference between ROI and ROAS?
ROI measures net profit as a percentage of investment cost, accounting for all expenses. ROAS measures gross revenue generated per dollar of ad spend without deducting costs. ROI gives a fuller profitability picture while ROAS is faster to compute and more commonly used in advertising.
How do I annualize my ROI?
Annualized ROI accounts for holding period length. The formula is ((1 + ROI)^(1/n) − 1) × 100, where n is the number of years held. This allows fair comparison between investments held for different durations.

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