ROI Calculator
Calculate Return on Investment including holding period and annualized returns.
Frequently Asked Questions
What is ROI?
ROI (Return on Investment) measures the profitability of an investment relative to its cost.
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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 ร 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
Enter investment cost
Input the total amount invested.
- 2
Enter return amount
Input the total amount gained from the investment.
- 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.