ROI Calculator
Evaluate the efficiency and profitability of an investment relative to its initial cost.
Calculation Inputs & Parameters
10000
(Default)
14500
(Default)
Return on Investment (ROI)
45.00%
Net Profit
$4,500
Initial Cost
$10,000
Total Return
$14,500
How the Calculation Works
ROI measures the percentage gain or loss generated on an investment.
Formula: ROI = [(Final Value - Initial Cost) / Initial Cost] × 100
Practical Worked Example
Given Inputs: Cost: 1,000 | Return: 1,500
Calculated Output: Net Profit: 500 | ROI: 50%
- (1,500 - 1,000) / 1,000 = 50%.
Pro Tip: Consider the time value of money for long-term investments, as simple ROI doesn't account for the duration of the investment.