Return on Investment (ROI) Calculator

Measuring Return on Investment (ROI) is a crucial step before making any business or financial choices. Our ROI Calculator allows you to easily determine the return you have achieved (or can anticipate) from any investment, be it a business initiative, stock investment, marketing effort, or real estate acquisition.

What Is ROI (Return on Investment)?

ROI (Return on Investment) is a percentage that tells you how profitable an investment is. It shows how much return you earned compared to the amount you invested.

Businesses use ROI to analyze the profitability of campaigns, projects, and assets, while individuals rely on it to evaluate stocks, mutual funds, real estate, and other investments.

Why ROI Matters

• Helps compare different investment opportunities
• Indicates past performance
• Supports better financial decision-making
• Useful for budgeting and forecasting

Formula for ROI

$$\text{ROI}=\left[\frac{\text{Final Value}-\text{Initial Investment}}{\text{Initial Investment}}\right]\times 100$$

Where:

• Final Value = Current or expected value of the investment
• Initial Investment = Amount originally invested

Simple Annual ROI

Simple Annual ROI measures the return per year, without compounding.

Formula:

$$\text{Simple Annual ROI}=\left(\frac{\text{Total ROI \%}}{\text{Number of Years}}\right)$$

CAGR (Compound Annual Growth Rate)

CAGR shows how much your investment grew annually on average, considering compounding. It is more accurate than simple ROI when analyzing multi-year investments.

Formula:

$$\text{CAGR}=[{\left(\frac{\text{Final Value}}{\text{Initial Investment}}\right)}^{\frac{1}{\text{Number of Years}}}-1]\times 100$$

How to find ROI using our Calculator?

1. Enter the “Invested Amount”, “Returned Amount”, and the “Invested Period” in Years, Months, Weeks, or Days.
2. Click “Calculate” to find the ROI, Simple Annual ROI, and CAGR.