ROI Calculator
Calculate return on investment (ROI) percentage and profit amount.
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How to Use This Tool
- Enter your initial investment amount (cost).
- Enter the final value or return amount.
- Click 'Calculate' to see your ROI percentage and net profit.
- Use the result to compare investment opportunities or evaluate business decisions.
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Frequently Asked Questions
What is ROI?
ROI (Return on Investment) measures the profitability of an investment. It's calculated as ((final value - initial cost) ÷ initial cost) × 100, expressed as a percentage.
What is a good ROI?
A 'good' ROI depends on the investment type and risk level. Stock market investments historically average 7-10% annually. Real estate typically targets 8-12%. For business projects, companies often require 15-20% minimum ROI.
Can ROI be negative?
Yes. A negative ROI means you lost money on the investment. For example, if you invested $1,000 and got back $800, your ROI is -20%.
Does this calculator account for time?
This calculator shows simple ROI. For comparing investments over different time periods, you should also consider annualized ROI, which accounts for the duration of the investment.
How is ROI calculated?
ROI (Return on Investment) is calculated as: ((Gain from Investment - Cost of Investment) / Cost of Investment) x 100. A positive ROI means profit, while a negative ROI indicates a loss.