ROI Calculator
Calculate the return on investment for any project or purchase.
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What is ROI (Return on Investment)?
ROI is a simple metric that measures the profitability of an investment. It’s expressed as a percentage and tells you how much you gained or lost relative to your initial investment.
ROI Formula
ROI = ((Amount Returned – Amount Invested) / Amount Invested) x 100
Example
You invested $10,000 in stocks and sold them for $15,000:
- Net Profit: $5,000
- ROI: 50%
When to Use ROI
ROI is useful for comparing different investment opportunities, evaluating business decisions, and measuring the effectiveness of marketing campaigns. However, it doesn’t account for the time period — a 50% ROI over 1 year is much better than 50% over 10 years. For time-adjusted comparison, use our Investment Return Calculator.
Limitations of ROI
Does not account for time — use annualized return for time-adjusted comparisons
Does not account for risk — higher ROI often comes with higher risk
Does not include opportunity cost — what you could have earned elsewhere