📊 ROI Calculator
Calculate return on investment percentage and determine whether an investment or business decision is worthwhile.…
What Is ROI?
Return on Investment (ROI) measures the profitability of an investment relative to its cost. It's expressed as a percentage and answers the fundamental question: "For every dollar I put in, how much do I get back?" ROI is one of the most widely used metrics for evaluating business decisions, marketing campaigns, real estate investments, and stock performance.
Net Profit = Final Value − Initial Investment
How to Interpret ROI
A positive ROI means your investment gained value. A negative ROI means you lost money. A 0% ROI means you broke even. What constitutes a "good" ROI depends on the investment type, time period, and alternative uses of capital. A 10% annual ROI is generally considered solid for stock market investments; real estate investors often target 8–12%.
ROI Limitations
ROI doesn't account for time — a 50% ROI over 10 years is far less impressive than 50% over 1 year. Always calculate annualized ROI for fair comparisons. Also, ROI doesn't account for risk. Two investments with identical ROI can have very different risk profiles.