The formula this calculator uses
ROI Calculator
ROI (%) = ((Final value − Initial cost) ÷ Initial cost) × 100
Net profit = Final value − Initial cost
Example: Invest $10,000, end with $15,000 → Profit $5,000, ROI = 50%
Why ROI matters
Return on investment is the simplest way to compare the profitability of different projects, marketing campaigns, or asset purchases. A higher ROI means more profit relative to the money put at risk.
Limitations of simple ROI
ROI ignores the time value of money and risk. Two investments with the same ROI can be very different if one took one year and the other took ten.
How to use this calculator
- Enter the required values in the fields above.
- Results update automatically as you type.
- Adjust any input to explore different scenarios.
Frequently asked questions
What is a good ROI?
It depends on the risk and time horizon. Stock-market long-term averages are often cited around 7–10% annualized after inflation.
Does ROI account for time?
Basic ROI does not. For multi-year investments, annualized ROI or CAGR is more informative.
Can ROI be negative?
Yes. A negative ROI means the investment lost money.
Should I include fees and taxes?
For a realistic figure, subtract all costs (fees, commissions, taxes) from the final value before calculating.