ROI Calculator
Measure the efficiency of your investment. Calculate the percentage return and net gain on your capital instantly.
Total Investment Gain: 0
ROI Percentage: 0%
How to Use the ROI Calculator
To calculate your Return on Investment, enter the Amount Invested (total cost of the investment) and the Amount Returned (the current value or final sale price). The tool will subtract the cost from the returns to find your Net Gain and then calculate what percentage that gain represents relative to your initial cost.
Frequently Asked Questions
What is ROI? +
ROI stands for Return on Investment. It is a financial metric used to calculate the probability of gaining a profit from an investment. It is a ratio that compares the gain or loss from an investment relative to its cost.
Can ROI be negative? +
Yes, if the "Amount Returned" is less than the "Amount Invested," the ROI will be a negative percentage. This indicates a loss on the investment rather than a gain.
What is a "Good" ROI? +
A "good" ROI depends on the asset class and the time period. For example, a 10% annual ROI in the stock market is generally considered good, while real estate might target different benchmarks depending on local market growth.
Does this account for time? +
This basic ROI formula does not account for the time held. To understand annual performance, you would need to calculate the "Annualized ROI," which considers the duration of the investment in years.
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