ROI Calculator
Calculate return on investment.
Related calculators
What Is ROI?
Return on Investment (ROI) measures the profitability of an investment relative to its cost. Formula: ROI (%) = (Net Profit ÷ Cost of Investment) × 100.
How to Interpret ROI
An ROI of 0% means you broke even. Positive ROI means you made a profit; negative ROI means a loss. A 25% ROI on a $10,000 investment means you gained $2,500 (total return: $12,500).
Annualized ROI
For multi-year investments, annualize the ROI: Annualized ROI = (1 + ROI)1/n − 1, where n is the number of years. A 50% return over 3 years ≈ 14.5% per year.
ROI vs. Other Metrics
ROI is simple but ignores time value of money. For long-term projects, Net Present Value (NPV) or Internal Rate of Return (IRR) provide better insight. Compare returns with compound interest to evaluate opportunity cost.