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ROI Calculator

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What is ROI?

Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment. It compares the gain or loss from an investment relative to its cost.

ROI is expressed as a percentage and is used to compare different investments and make informed financial decisions.

ROI Formula

ROI = [(Final Value - Initial Investment) / Initial Investment] × 100

  • • ROI = Return on Investment (as percentage)
  • • Final Value = Current or final value of investment
  • • Initial Investment = Original amount invested

Interpreting ROI

  • Positive ROI: Investment generated profit
  • Negative ROI: Investment resulted in a loss
  • Higher ROI: Better investment performance
  • ROI doesn't account for time period - use annualized ROI for comparisons

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