100% x 90

ROI Calculator

Calculate return on investment to evaluate investment profitability

Calculation Mode

Invested Amount ($)

Returned Amount ($)

ROI Results

ROIVery Good

+20.00%

Gain/Loss

$2,000.00

Calculation Formula:

ROI = (Gain from Investment / Cost of Investment) × 100

ROI = ($2,000.00 / $10,000.00) × 100

ROI = +20.00%

100% x 250

About ROI

What is ROI?

Return on Investment (ROI) is a financial metric used to evaluate the efficiency and profitability of an investment. It measures the amount of return relative to the investment cost.

ROI Formula

ROI = (Gain - Cost) / Cost × 100

ROI Benchmarks

Excellent:>25%

Very Good:15-25%

Good:10-15%

Fair:5-10%

Poor:<5%

Investment Examples

Real Estate

Property bought for $600,000, sold for $900,000

ROI = ($900,000 - $600,000) / $600,000 × 100 = 50%

Stock Investment

150 shares at $12.67, sold at $15.23

Investment: $1,900.50
Return: $2,284.50
ROI = 20.21%

Marketing Campaign

$250,000 budget, $400,000 total gains over 2 years

ROI = ($400,000 - $250,000) / $250,000 × 100 = 60%

Understanding ROI

How to Calculate ROI

Determine the initial investment cost
Calculate the final value or return amount
Subtract the initial cost from the final value to get the gain
Divide the gain by the initial cost
Multiply by 100 to get the percentage

ROI vs Other Metrics

ROI vs ROE: ROI considers total investment cost, while ROE only considers equity investment.

ROI vs IRR: IRR considers the time value of money, while basic ROI doesn't account for time.

ROI vs NPV: NPV provides absolute value while ROI gives percentage return.

ROI Best Practices

Advantages of ROI

Simple and easy to calculate
Universally understood metric
Easy to compare different investments
Requires minimal data inputs
Quick profitability assessment

Limitations of ROI

Doesn't consider time value of money
Ignores risk factors
Can be manipulated based on calculation method
Doesn't account for investment duration
May not reflect true investment performance

Important Note

When comparing investments with different time periods, consider using annualized ROI or other time-adjusted metrics like IRR for more accurate comparisons.

100% x 250