Evaluate the profitability of any investment.

CalcVerse

Return on Investment (ROI)

⚠️ Important: Financial figures generated here are for planning purposes. Actual results may vary based on market conditions and individual circumstances.

What is Return on Investment (ROI)?

Measures the gain or loss generated on an investment relative to the amount of money invested.

How it Works

1. Define 'Amount Invested'. 2. Specify 'Amount Returned'. 3. Calculate percentage gain.

Step-by-Step Guide

1. Invested

Cost basis.

2. Returned

Final value.

3. Result

Percentage.

Example

Input: $1,000 In, $1,500 Out

Result: 50%

FAQ

What is a good ROI?

Depends on risk. Stocks average 7-10%; high risk should yield higher.

Can ROI be negative?

Yes, if you lose money, ROI is negative.

Is time a factor?

Simple ROI doesn't account for time. Use Annualized ROI for that.

Does this include taxes?

Usually calculated pre-tax unless specified.

Why use ROI?

To compare efficiency across different investments.

Conclusion

ROI is the universal language of profitability. Whether comparing stocks, real estate, or business ventures, normalizing returns to a percentage allows for apples-to-apples comparison.

Explore Related Calculators

References & Standards

This calculator uses formulas and data standards from Investopedia to ensure accuracy.

Interactive Calculator Loading...