Return on Investment (ROI)
Evaluate investment returns and profitability percentages. Fast, free, and fully client-side.
Calculator Inputs
Final Value ($)
Initial Investment Cost ($)
ROI (%)—
Net Profit—
How the Return on Investment (ROI) Works
Return on Investment (ROI) evaluates the financial performance and profitability of an investment by comparing net profits directly against the original capital expended.
Formula
ROI (%) = ((Final Value - Initial Cost) / Initial Cost) × 100
Expresses net investment gain or loss as a percentage of initial capital invested.
Calculation Example
Purchasing an asset for $5,000 and selling it for $6,500 produces a net profit of $1,500, representing an ROI of (1,500 / 5,000) × 100 = 30%.
Frequently Asked Questions
How is Annualized ROI calculated?
Annualized ROI accounts for holding period: Annualized ROI = ((1 + ROI)^(1 / Years) - 1) × 100.