ROI Calculator
Use this ROI Calculator to evaluate the profitability of an investment by calculating Return on Investment (ROI), net profit, and investment efficiency.
Net Profit
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ROI (%)
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Total Cost
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What Is ROI (Return on Investment)?
ROI (Return on Investment) is a financial metric used to evaluate the efficiency or profitability of an investment. It measures how much return you earn relative to the amount invested.
ROI Formula
ROI (%) = (Net Profit ÷ Total Investment Cost) × 100
Net Profit = Final Value − (Initial Investment + Additional Costs)
Why ROI Matters
- Compare investment performance
- Measure profitability
- Evaluate business decisions
- Optimize capital allocation
Where ROI Is Used
- Stock market investments
- Real estate analysis
- Business projects
- Marketing campaigns
Frequently Asked Questions
A good ROI depends on risk and investment type, but higher than inflation
and market benchmarks is generally considered good.
Yes. If the final value is less than the total investment cost, ROI becomes negative.
Basic ROI does not account for time. For time-based analysis, CAGR is preferred.
ROI is useful but should be used with other metrics like risk, liquidity, and duration.