ROI Calculator
Calculate your return on investment percentage based on gain and initial cost.
For informational purposes only, not professional financial or tax advice.
ROI Calculator
Calculate gains and annualized returns
ROI% = ((Final - Initial) / Initial) × 100 Finance Note: A good long-term ROI benchmark is 7–10% annually (S&P 500 historical average).
Past performance does not guarantee future results. This calculator is for educational reference — consult a financial advisor for personalized investment advice.
Financial Disclaimer:
This tool is for informational and educational purposes only. It is not a substitute for professional financial, tax, or legal advice. Always consult a qualified professional regarding your specific financial situation.
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How to Calculate
ROI% = ((Gain − Cost) ÷ Cost) × 100
ROI % = ((Final Investment Value − Initial Investment Cost) ÷ Initial Investment Cost) × 100. Net Profit = Final Value − Initial Cost.
* Example: $10,000 invested, $12,000 returned → 20% ROI
Step-by-Step Manual Calculation Guide
Step 1: Subtract initial investment cost from final investment value to find net profit.
Step 2: Divide net profit by initial investment cost.
Step 3: Multiply quotient by 100 to state ROI percentage.
Real-World Industry Applications
Stock Investment Performance
Evaluating a stock portfolio purchased for $10,000 and sold for $14,000 (($14,000 − $10,000) ÷ $10,000 × 100 = 40% ROI).
Real Estate Property Flip
Calculating 25% ROI on a property acquired and renovated for $200,000 and resold for $250,000.
Marketing Campaign ROI
Measuring return on a $5,000 ad campaign that generated $20,000 in gross revenue (300% ROI).
ROI Calculator Worked Examples
How it Works
The ROI (Return on Investment) Calculator measures profitability efficiency by expressing net profit as a percentage of initial investment cost.
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Frequently Asked Questions
How do I calculate ROI percentage?
Subtract initial investment cost from final value, divide by initial cost, and multiply by 100. Example: ($150 - $100) / $100 = 0.50 × 100 = 50% ROI.
Can ROI percentage be negative?
Yes, if final investment value is lower than initial investment cost, ROI will be negative, indicating a financial net loss.
What is Annualized ROI?
Annualized ROI calculates geometric average annual return, allowing fair comparison of investments held over different time periods.
What is considered a good ROI percentage?
S&P 500 historical average annual ROI is ~10% (7-8% inflation-adjusted). Good commercial real estate ROIs range from 8% to 12%+.
Does basic ROI account for holding taxes or inflation?
Standard simple ROI does not account for taxes, fees, or inflation. Net ROI after expenses provides a more accurate metric.