ROI Calculator (Return on Investment)
Calculate your return on investment: net profit and ROI percentage from what you invested and got back.
Result
Net profit
50,000.00
ROI (%)
50.00
How it works
Return on investment expresses gain relative to what you put in: (returned − invested) ÷ invested × 100. Put in 1,000 and get back 1,250 and the ROI is 25%. Its strength is comparability. A raw profit figure says nothing without the stake behind it — 500 earned on 1,000 is a very different result from 500 earned on 50,000, and only the percentage makes the two commensurable. Its weakness is that it ignores time entirely. A 25% ROI is excellent over one year and mediocre over ten, yet both produce the same number. Before comparing anything, put the returns on the same timescale by annualising them, and remember the figure is gross: fees, taxes and inflation all come out of it afterwards.
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Frequently asked questions
What is a good ROI?
It depends on the investment and the risk, but a positive ROI means a profit; the higher, the better.
How is ROI calculated?
ROI = (amount returned − amount invested) ÷ amount invested × 100.
Does ROI account for time?
No, and that is its main limitation. Two investments both returning 25% are not equivalent if one took a year and the other a decade — annualise before comparing, or use CAGR, which builds the time in.
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