ROI Calculator
Calculate return on investment (ROI) and net gain from an initial cost and final value. Shows the steps.
ROI Calculator
What ROI Tells You
Return on investment (ROI) answers a simple question: for the money you put in, how much did you get back? It compares your gain (or loss) to what it cost, as a percent - so a 500 gain on a 1,000 investment is a 50% return, the same rate as a 50 gain on 100.
Putting it as a percent lets you compare very different investments fairly. The bar under the calculator shows your cost (blue) and the gain stacked on top (green) - or, if it lost money, the part that was lost (orange). ROI ignores how long it took; for a per-year rate, use CAGR.
To estimate how many months of net income it takes to recover your initial cost, use the investment payback calculator.
ROI Formula
How to Use It
- Enter the initial investment and the final value.
- Read the ROI percentage and the net gain or loss.
Worked Examples
| Initial | Final | ROI | Net |
|---|---|---|---|
| 1000 | 1500 | 50% | 500 gain |
| 200 | 260 | 30% | 60 gain |
| 5000 | 4000 | −20% | 1000 loss |
FAQ
How do you calculate ROI?
Subtract the cost from the final value, divide by the cost, and multiply by 100. For 1000 → 1500: .
Can ROI be negative?
Yes. If the final value is below the initial cost, the ROI is negative — a loss.
Does ROI account for time?
No. ROI is the total return regardless of how long it took. For an annualized rate, use the CAGR calculator.