ROI Calculator
Calculate Return on Investment (ROI) percentage and annualized ROI for any business or personal investment.
Input Parameters
Results
Understanding ROI
ROI = (Net Profit / Cost) × 100. Annualized ROI adjusts for the time period, making investments of different durations comparable. A positive ROI means the investment was profitable.
What is the ROI Calculator?
The Return on Investment (ROI) Calculator is the universal metric used by investors to evaluate the efficiency and profitability of an investment. It tells you exactly how much money you gained relative to the amount you risked.
How It Works (Algorithm)
ROI is purely a percentage game. The tool calculates your Net Profit by subtracting the total cost of the investment from the final returned amount. It then divides that profit by the original cost and multiplies by 100 to yield a percentage.
$$ \text{ROI} = \frac{\text{Return} - \text{Cost}}{\text{Cost}} \times 100 $$
The fundamental equation for measuring profitability.
How to Use It
Enter your total initial investment cost. Then, enter your final total return (the amount you sold the asset for). The calculator will instantly output your Net Profit in dollars and your total ROI as a percentage.