Calculate return on investment
Return on Investment expresses the gain or loss of an investment as a percentage of its cost. Useful for comparing investment efficiency across projects of different sizes.
ROI = ((Final Value − Cost) / Cost) × 100
Final Valueending value including any incomeCosttotal investmentReturn on Investment (ROI) measures the profitability of an investment as a percentage. It is calculated as: ROI = ((Net Profit) / Cost of Investment) × 100.
A "good" ROI depends on the context. Stock market returns average 7-10% annually after inflation. Real estate averages 8-12%. Any ROI above your opportunity cost is generally considered good.
Basic ROI shows total return regardless of time. Annualized ROI adjusts for the investment period so you can compare investments held for different durations on a yearly basis.