Calculate the return on investment (ROI) and net profit based on your initial investment and final value.
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The ROI formula is: ROI % = ((Final Value − Initial Investment) ÷ Initial Investment) × 100. This expresses your net profit or loss as a percentage of what you originally invested, making it easy to compare returns across different investments regardless of size.
For example, an initial investment of 10,000 that grows to a final value of 12,500 has an ROI of ((12,500 − 10,000) ÷ 10,000) × 100 = 25%.
There's no universal 'good' ROI, it depends heavily on the type of investment, the time period involved, and the risk taken. A 25% ROI over one year is very different from a 25% ROI over ten years. This calculator shows a simple ROI percentage without factoring in time period, so it's most useful for comparing investments held over similar durations.
Comparing ROI figures across investments held for very different lengths of time without annualizing first, a 25% ROI over 1 year and a 25% ROI over 10 years represent very different actual performance, use the CAGR Calculator to compare fairly.
Leaving fees, taxes or other transaction costs out of the initial investment or final value, which can meaningfully overstate the real return.
Treating a negative result as a calculator error rather than a legitimate loss, a negative ROI correctly means the final value ended up below the initial investment.
ROI is calculated as the net profit (final value minus initial investment) divided by the initial investment, expressed as a percentage.
Yes, a negative ROI means the final value is less than the initial investment, indicating a loss.
No, this is a simple ROI calculation and doesn't factor in how long the investment was held. For comparing investments over different time periods, an annualized return would be more appropriate.
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