⚠️ Important: Financial figures generated here are for planning purposes. Actual results may vary based on market conditions and individual circumstances.
What is Simple ROI Calculator?
Simple ROI measures the profitability of an investment relative to its cost. It does not account for the holding period.
How it Works
Formula: (Net Profit / Total Investment) * 100.
Net Profit = Final Value - Initial Cost.
Step-by-Step Guide
- Cost – Total invested amount.
- Gain – Total return value.
- Calculate – Percentage return.
Example
Input: $200 Profit, $1000 Cost
Result: 20% ROI
FAQ
What is good ROI?
Depends on risk. 7% is avg for stocks.
Negative ROI?
Means a loss.
Time factor?
Simple ROI ignores time; use Annualized ROI.
Include fees?
Yes, use net profit.
Uses?
Marketing, flips, short trades.
Conclusion
Simple ROI is great for quick comparisons but lacks the time dimension. For investments held over different periods, use CAGR.