Return on Investment (ROI) Calculator
Calculate the profitability of your investments with our free ROI calculator. Determine your return percentage, net profit, and annualized ROI for smarter financial decisions.
Understanding ROI
Return on Investment (ROI) is a key financial metric used to evaluate the efficiency and profitability of an investment. It compares the magnitude and timing of gains from an investment directly to the magnitude and timing of investment costs.
ROI Formula
The basic ROI formula is:
ROI = [(Current Value of Investment – Cost of Investment) / Cost of Investment] × 100
Key Benefits
- Measures investment efficiency
- Allows comparison between different investments
- Considers the time value of money when annualized
- Essential for business investment decisions
Calculate Your ROI
ROI Percentage
Net Profit/Loss
Annualized ROI
Investment Comparison
Interpreting Your ROI Results
Understanding what your ROI means is crucial for making informed investment decisions. Here’s how to evaluate your results:
Positive ROI
A positive ROI indicates your investment has gained value. The higher the percentage, the better the return. Compare with benchmarks to evaluate performance.
Negative ROI
A negative ROI means your investment has lost value. Consider whether to hold (if future growth is expected) or cut losses and reallocate funds.
Annualized ROI
This shows your average annual return, allowing comparison between investments of different durations. Essential for long-term investment analysis.