ROI Calculator - Return on Investment

ℹ️ What is ROI Calculator?

An ROI (Return on Investment) calculator measures the profitability of an investment as a percentage of its cost. It is used in business decisions, marketing performance, stock analysis, and any scenario where you want to know how much you gained relative to what you spent.

📐 Formula

✏️ Worked Example

1. 1Gain = $14,500 − $10,000 = $4,500
2. 2ROI = ($4,500 / $10,000) × 100 = 45%

💡 How to Interpret Results

• ▸Positive ROI means the investment generated profit; negative ROI means a loss.
• ▸Compare ROI to the risk-free rate (e.g., treasury bonds at ~5%) to assess if the risk was worth it.
• ▸ROI does not account for time — a 50% ROI over 10 years is far less impressive than 50% in 1 year.
• ▸For business decisions, compare the ROI of all options and prioritize the highest risk-adjusted returns.
• ▸Marketing ROI ≥ 400% (4:1) is generally considered a healthy return.

❓ Frequently Asked Questions

🔗 Related Calculators