Return on Investment

Required Inputs

Initial Investment Cost

Total Revenue/Return

Investment Period (Years)

Optional Inputs

Additional Costs

ROI Analysis

ROI Percentage

Net Profit

Annualized ROI

Total Investment

Understanding ROI

What is ROI?

Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment. It measures the amount of return on an investment relative to the investment's cost.

ROI Formula

ROI = (Net Profit / Total Investment) × 100

Where Net Profit = Total Revenue - Total Investment

Interpreting ROI Results

Positive ROI means the investment gained value
Negative ROI means the investment lost money
Higher ROI percentages indicate more profitable investments
Compare annualized ROI when evaluating investments of different durations
Consider risk factors - higher returns often come with higher risk

ROI Calculator