Return on Investment Calculator

Our Return on Investment Calculator ( ROI ) is very easy to use for everyone. And gives immediate response to calculations.

Initial Investment $

Final Return $

Years Till Return

Investment Gain: $

ROI: %

Annualized ROI: %

Share This Calculator

Related Calculator

Return on Investment Calculator ( ROI )

When we invest money in any business or trade, we expect how much potential profit or loss we will get? A return on investment calculator (ROI) is a tool that helps you calculate the potential profit or loss on an investment. It enables you to calculate the expected returns of an investment over a fixed time frame. You input the initial investment amount, the final return you expect, and the number of years until you advance the return. The calculator then computes the investment gain, ROI (percentage return on investment), and helps in planning for the future .

Return on Investment ( ROI ) Calculation Formula

Return on Investment (ROI) is a financial metric used to evaluate the profitability of an investment. The formula for calculating ROI is -

$� � � = (\frac{� � � � � � � � �}{� � � � � � � � � � � � � � � �}) \times 100$

Here's a description of the components

1 . Net Profit - Net profit is the total revenue generated by the investment minus the total expenses incurred. The formula for net profit is -
$� � � � � � � � � = � � � � � � � � � � � � - � � � � � � � � � � � � �$
2 . Cost of Investment - The cost of investment includes all the costs associated with acquiring, implementing, and maintaining the investment. It can include purchase costs, installation costs, training costs, and any other relevant expenses.
3 . Interpretation -
- An ROI greater than 100% suggests that the investment has generated a profit.
- An ROI of 100% means that the investment has perfect.
- An ROI less than 100% indicates a net loss on the investment.

ROI Calculation Example

Let's say you invested $ 50,000 in a marketing campaign that generated $ 80,000 in additional revenue. The total expenses for the campaign were $ 20,000. Using these values, you can calculate the ROI -

$� � � � � � � � � = � � � � � � � � � � � � - � � � � � � � � � � � � �$

$Net\;Profit = $ 80,000 - $ 20,000 = $ 60,000$

$� � � = (\frac{� � � � � � � � �}{� � � � � � � � � � � � � � � �}) \times 100$

RO I = (\frac{N e t P ro f i t}{C os t o f I n v es t m e n t}) \times 100

$ROI = \left( \frac{$60,000}{$50,000} \right) \times 100 = 120\%$

In this example, the ROI is 120%, indicating that for every dollar invested, there was a return of $ 1.20.

Return on Investment Calculator

Return on Investment Calculator ( ROI )

Table of Contents

Return on Investment ( ROI ) Calculation Formula

ROI Calculation Example

Populator Calculators And Converters

Other