ROI Calculator
Calculate return on investment, analyze profit margins, and evaluate investment performance. Get detailed insights for business and personal investments.
ROI Performance
Basic ROI Calculation
Calculate return on investment using initial investment and final value.
Investment Analysis
Performance Metrics
ROI Guide
Understanding ROI
ROI = (Final Value - Initial Investment - Costs) / Initial Investment × 100
Time Matters
Consider the time period when evaluating ROI. A 20% return over 5 years is different from 20% in 1 year. Use annualized ROI for fair comparisons.
Risk vs Return
Higher returns often come with higher risk. Consider your risk tolerance and diversify investments to balance potential returns with safety.
Include All Costs
- • Transaction fees and commissions
- • Taxes on gains
- • Maintenance and management costs
- • Opportunity cost of capital
ROI Benchmarks
Investment Tips
- • Diversify across asset classes
- • Consider inflation impact on returns
- • Reinvest dividends for compound growth
- • Review and rebalance regularly
- • Don't chase short-term gains
- • Understand tax implications
ROI Calculator Answers
What does the ROI calculator do?
The ROI calculator helps you determine the return on investment by comparing the gain or loss from an investment relative to its cost.
What is the formula used for ROI?
ROI = (Net Profit / Investment Cost) × 100. This shows the percentage return you earned on your initial investment.
Can it be used for business and personal investments?
Yes. You can use it to evaluate business projects, stock investments, real estate deals, or any situation where you spend money to gain returns.
Does the calculator account for time?
Basic ROI doesn’t include time, but some advanced calculators may factor in duration using metrics like annualized ROI or IRR.