ROI Calculator
Calculate the return on investment (ROI) and annualized ROI for any investment. ROI measures the amount of return on an investment relative to the investment's cost.
ROI Results
| ROI | 0% |
|---|---|
| Investment Gain | $0.00 |
| Investment Time | 0 years |
| Annualized ROI | 0% |
| Profit Percentage | 0% |
| Total Return | 1.00x |
About ROI Calculator
The Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment. ROI compares the magnitude and timing of investment gains directly with the magnitude and timing of investment costs.
How to Calculate ROI
The basic formula for ROI is:
ROI = (Gain from Investment - Cost of Investment) / Cost of Investment
Where:
- Gain from Investment refers to the proceeds obtained from the sale of the investment of interest.
- Cost of Investment refers to the total amount invested.
Annualized ROI
Annualized ROI is a measure of the average yearly return on an investment over a given time period longer than one year. It's calculated as:
Annualized ROI = [(1 + ROI)1/n - 1] × 100%
Where n is the number of years the investment is held.
Why ROI Matters
ROI is a popular metric because of its versatility and simplicity. Essentially, ROI can be used as a rudimentary gauge of an investment's profitability. This could be the ROI on a stock investment, the ROI a company expects on expanding a factory, or the ROI generated in a real estate transaction.