ROI Calculator
Formulas
ROI = ((Final Value - Initial Investment) / Initial Investment) × 100%
Annualized ROI = ((Final / Initial)^(1/Years) - 1) × 100%
About This Calculator
Use the roi calculator when you want faster calculations with a clear method behind every result.
Measure return on investment as a percentage and compare project options with different cost and profit profiles.
If your workflow expands, pair this calculator with NPV-IRR Calculator and Project Profitability Calculator to cross-check assumptions and build a stronger analysis chain.
Formula
ROI (%) = [(Gain - Cost) / Cost] * 100
Example Calculation
The worked example below demonstrates how the input fields translate into the final output. Use it as a quick validation pass before entering your own numbers.
- investmentCost: 12000
- grossReturn: 16500
Explanation of Results
Result Interpretation
A 37.5% ROI means the investment generated profit equal to 37.5% of the original cost over the measured period.
FAQ
Is ROI enough for comparing long projects?
Not always. ROI ignores time value and timing of cash flows, so use NPV/IRR for multi-period capital decisions.
Should taxes be included in ROI?
For operational planning, yes. After-tax ROI is often more decision-relevant than gross ROI.
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