Return on Investment (ROI) Calculator
Calculate ROI and annualized returns to evaluate investment profitability
Return on Investment (ROI) Calculator
Calculate your return on investment (ROI) to evaluate the profitability of your investments. Our calculator supports both date-based and length-based calculations with annualized returns.
đ° Investment Details
đ ROI Results
đ Understanding ROI
Basic ROI Formula
ROI = (Gain from Investment - Cost of Investment) / Cost of Investment à 100%
This simple formula helps you evaluate the efficiency of your investments.
Annualized ROI
Annualized ROI accounts for the time factor, making it easier to compare investments with different time periods. It shows the equivalent yearly return rate.
Investment Comparison
Use ROI to compare different investment opportunities. Higher ROI generally indicates better performance, but consider risk factors and investment duration.
What is ROI?
Return on Investment (ROI) is a performance measure used to evaluate the efficiency and profitability of an investment. It's one of the most popular profitability ratios because it's flexible and can be applied to various types of investments.
ROI is expressed as a percentage and is calculated by dividing the net profit from an investment by the initial cost of the investment. The higher the ROI, the more attractive the investment becomes from a profitability standpoint.
Key Benefits of ROI Analysis
- Simple to Calculate: Easy to understand and compute with basic financial data
- Universal Application: Can be applied to any type of investment
- Comparison Tool: Helps compare different investment opportunities
- Performance Tracking: Monitor investment performance over time
- Decision Making: Aids in making informed investment decisions