🧰 UtlKit

ROI Calculator

Calculate Return on Investment including holding period and annualized returns.

Quick Scenarios

Frequently Asked Questions

What is ROI?

ROI (Return on Investment) measures the profitability of an investment relative to its cost.

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📊 Data Summary (auto-filled)

Tool: roi-calculator · /tools/roi-calculator/

periodUnit: months

What is this tool?

ROI (Return on Investment) Calculator computes the percentage return on an investment by comparing net profit to cost. The formula is ROI = (Gain - Cost) / Cost × 100%. It helps you evaluate whether an investment was worthwhile and compare returns across different opportunities, accounting for both profit and loss scenarios.

How to use

  1. 1

    Enter investment cost

    Input the total amount invested.

  2. 2

    Enter return amount

    Input the total amount gained from the investment.

  3. 3

    View results

    See ROI percentage, net profit, and multiplier (how many times your money grew).

Frequently Asked Questions

What is a good ROI?

A "good" ROI depends on the investment type and risk. A 10% ROI on a low-risk bond is excellent, while a venture capital investment may need 50%+ to be worthwhile. Compare against your opportunity cost and required rate of return.

Can ROI be negative?

Yes. When the return is less than the cost, ROI is negative, indicating a loss. A negative ROI of -50% means you lost half your investment.

How does ROI differ from IRR?

ROI is a simple percentage ignoring the time value of money. IRR considers when cash flows occur, making it more accurate for multi-year investments. ROI = (Gain-Cost)/Cost; IRR is the rate where NPV = 0.

How do I calculate ROI?

ROI = (gain - cost) ÷ cost × 100%. Example: buy for $10,000, sell for $13,000: ROI = 3,000/10,000 = 30%. For multi-year holdings, compare using CAGR - a 30% gain over 5 years is only about 5.4% per year.

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