📈 ROI Calculator
Calculate return on investment percentage
How ROI Is Calculated
Formula
ROI = ((Net Profit) / Cost of Investment) × 100
- 1Enter the total cost of the investment.
- 2Enter the total return (final value or revenue received).
- 3Net profit is calculated as return minus cost.
- 4Net profit is divided by the cost of investment.
- 5The result is multiplied by 100 to express it as a percentage.
About ROI Calculator
Calculate Return on Investment to measure the profitability of an investment. Enter the cost and return to see your ROI percentage and net profit instantly.
Frequently Asked Questions
What is a good ROI?
A 'good' ROI depends on the context. The stock market historically averages about 7-10% annually. Real estate typically targets 8-12%. Any positive ROI means you made money, but it should be compared to alternative investments.
Does ROI account for time?
Basic ROI does not account for the time period. A 50% ROI over 10 years is very different from 50% over 1 year. For time-adjusted returns, use annualized ROI or IRR (Internal Rate of Return).
Can ROI be negative?
Yes. A negative ROI means the investment lost money — the return was less than the cost. For example, investing $1,000 and getting back $800 gives an ROI of −20%.