ROI Calculator
Calculate your return on investment, measure your net profit or loss, and understand how much value your investment has generated.
Enter Your Investment Details
Enter your initial investment and its final value to calculate your ROI.
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Enter your investment details to calculate your return on investment.
How to Calculate Return on Investment (ROI)
Return on Investment (ROI) measures the gain or loss generated by an investment compared with its initial cost. It is commonly expressed as a percentage and can help evaluate investment performance.
ROI Formula
Net Profit / Loss = Final Investment Value − Initial Investment
ROI = (Net Profit / Loss ÷ Initial Investment) × 100
Total Return Multiple = Final Investment Value ÷ Initial Investment
Calculation Example
Suppose you invest $10,000 in a business project. After the investment period, its final value is $12,500.
- Initial investment: $10,000.
- Final investment value: $12,500.
- Net profit: $12,500 − $10,000 = $2,500.
- ROI: ($2,500 ÷ $10,000) × 100 = 25%.
- Total return multiple: $12,500 ÷ $10,000 = 1.25x.
Important Notes
This calculator shows total ROI over the investment period. It does not automatically deduct taxes, transaction fees or operating costs unless those amounts are already reflected in the final investment value. It also does not annualize returns or account for the time value of money.
Frequently Asked Questions
What is Return on Investment (ROI)?
ROI is a financial metric that compares the gain or loss from an investment with the initial amount invested. A positive ROI indicates a gain, while a negative ROI indicates a loss.
What is a good ROI?
A good ROI depends on the investment type, risk, time period, market conditions and available alternatives. There is no single ROI percentage that is suitable for every investment.
Can ROI be zero?
Yes. ROI is zero when the final investment value equals the initial investment, meaning there is no gain or loss before additional costs not included in the figures.
Can ROI be negative?
Yes. ROI is negative when the final investment value is lower than the initial investment. This indicates that the investment has lost value.
Does this calculator include taxes and fees?
No. Enter the investment value you want to evaluate. Taxes, transaction fees, operating costs and other expenses should be accounted for separately if they are not already included in your figures.
Does ROI account for investment time?
This calculator shows the total ROI over the investment period. It does not annualize the return or account for the time value of money. Investments held for different periods should not be compared using total ROI alone.