Return on Investment (ROI) Calculator

years

Total Gain on Investment:


Return on Investment (ROI):
%


Simple Annual ROI:
%


Compound Annual Growth Rate (CAGR):
%



What is the ROI?

An ROI calculator is a tool that helps you measure the profitability of an investment. ROI, or Return on Investment, indicates how much gain or loss you have made relative to the amount you initially invested. The return on investment calculator quickly shows whether an investment has been worthwhile or not.

This tool is useful for individuals, businesses, and investors who want to assess the performance of various investment options over a certain period. Whether you are evaluating stock market returns, business projects, or real estate, the roi calculator helps you make informed financial decisions.


How Does the ROI Calculator Work?

The basic roi formula is:

ROI = [(Final Value of Investment – Initial Investment) / Initial Investment] × 100

Where:

Final Value of Investment = Total value after investment period

Initial Investment = Amount originally invested

You simply input your initial and final investment values into the return on investment formula, and the calculate return on investment online tool instantly gives you the ROI percentage.

Some versions, like a yearly roi calculator, also allow you to adjust for the number of years to show annualized returns, making it easier to compare different investments over time.

Using an online roi calculator eliminates guesswork and helps you evaluate investment opportunities with confidence.


Frequently Asked Questions:

It helps you quickly assess whether an investment is profitable compared to alternatives.

Generally yes, but higher ROI might also involve higher risk, so it’s important to balance risk and return.

Yes, if your final investment value is less than the initial amount, the ROI will be negative, indicating a loss.

Yearly ROI shows the return you earn annually, making it easier to compare investments held for different durations.

Yes, you can use the latest available value to estimate the current ROI, even if the investment hasn’t matured yet.


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