ROI Calculator
Calculate your Return on Investment (ROI) to measure the efficiency of an investment.
About ROI Calculator
ROI (Return on Investment) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. ROI measures the amount of return on an investment, relative to the investment's cost.
How to Use?
- Enter the Amount Invested (Initial Cost).
- Enter the Amount Returned (Final Value).
- Optionally, enter the Investment Length to calculate Annualized ROI.
- The calculator will display the ROI percentage, Net Profit, and Annualized ROI.
Features
- Simple ROI Calculation: Quick percentage return calculation.
- Annualized ROI: Understand the yearly performance of your investment.
- Profit/Loss Visualization: Clear indication of gain or loss.
FAQ
What is a good ROI?
A "good" ROI depends on the investment type and risk tolerance. Generally, an annual ROI of 7% or more (adjusted for inflation) is considered good for stock market investments.
How is ROI calculated?
ROI = ((Current Value of Investment - Cost of Investment) / Cost of Investment) * 100%
What is Annualized ROI?
Annualized ROI provides the geometric average amount of money earned by an investment each year over a given time period. It is useful for comparing investments held for different lengths of time.