How to Calculate ROI
Calculate Return on Investment (ROI) = (Final Value - Initial Investment) / Initial Investment × 100%. Process: enter initial investment and final value (or net gain), compute ROI percentage, and interpret the result. Example: Invest $1,000; final value $1,250 → ROI = 25%.
How to Calculate ROI
What: ROI (Return on Investment) expresses the percentage gain or loss relative to the original investment. Usage: provide initial cost and final value or net gain, click calculate. Scenarios: finance, marketing campaign analysis, and investment comparisons.
Example: Initial $1000, Final $1250 → ROI = ((1250 - 1000) / 1000) × 100 = 25%
Example: Initial $1000, Final $1250 → ROI = ((1250 - 1000) / 1000) × 100 = 25%
Frequently asked questions
How is ROI calculated?
ROI = (Final Value − Initial Investment) / Initial Investment × 100%. A positive result means a gain; negative means a loss.
Should fees and taxes be included?
For a realistic ROI, include fees, taxes, and other costs in the initial investment or final value. This tool does not estimate taxes for you.
Is ROI the same as annualized return?
No. Simple ROI ignores time. Annualized returns adjust for holding period and are better for comparing investments of different lengths.
Important notice
ROI results are educational illustrations only and are not investment, tax, or financial advice. Past or hypothetical returns do not guarantee future results.
References: Standard finance definition of return on investment: net gain divided by cost of investment.