ROI Calculator
Calculate return on investment (ROI) to measure the profitability of your investments.
How it works
ROI (Return on Investment) is calculated using the formula: ROI = (Final Value - Initial Investment) / Initial Investment × 100. This shows you the percentage return on your investment and the total profit or loss. A positive ROI means you made money, while a negative ROI means you lost money.
Example
If you invest $50,000 and it grows to $68,000, your ROI is 36%. You made a profit of $18,000 on your initial investment.
Frequently asked questions
What is a good ROI?
A good ROI depends on the investment type and time frame. Stock market returns average around 10% annually. Real estate might return 8-12%. Any positive ROI is good, but compare it to alternative investments and consider the risk involved.
How do I calculate ROI for multiple years?
This calculator shows total ROI. To find annual ROI, divide the total ROI by the number of years. For example, a 36% ROI over 3 years is approximately 12% per year (though compound growth makes the actual calculation more complex).
Should I include costs in my ROI calculation?
Yes, include all costs in your initial investment (purchase price, fees, taxes, etc.) and all proceeds in your final value (sale price minus selling costs). This gives you a true ROI that accounts for all expenses.
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