ROI Calculator
Calculate your return on investment percentage and analyze how well your investments are performing.
Gain
$5,000.00
ROI Percentage
50.00%
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What is ROI?
Return on Investment (ROI) is a performance measure that calculates how efficiently your investment generates profit relative to the cost of the investment. It's expressed as a percentage and helps you compare the profitability of different investments.
ROI Formula
ROI = ((Final Value - Initial Value) / Initial Value) × 100
Where:
- Final Value = The current or ending value of your investment
- Initial Value = The amount you initially invested
- Gain = Final Value - Initial Value
Example ROI Calculation
If you invested $10,000 and it grew to $15,000:
How to Use the ROI Calculator
- Enter Initial Investment: Input the amount you initially invested.
- Enter Final Value: Input the current value of your investment.
- View Results: The calculator shows your gain and ROI percentage.
FAQ
What's a good ROI?
A good ROI depends on the investment type and time frame. Stock markets average 10% annually long-term, real estate typically 8-12%, and bonds 4-6%. Compare against your risk tolerance and investment goals.
Can ROI be negative?
Yes, a negative ROI means your investment lost money. For example, if you invested $10,000 and it's now worth $8,000, your ROI is -20%.
How does time affect ROI?
ROI doesn't account for time by default, which is why annualized ROI is important. A 50% return over 10 years is less impressive than a 50% return over 1 year.