Overview
Return on Investment (ROI) is the percentage gain or loss on an investment relative to its cost. It is the universal language of business and investing.
The Formula
ROI = ((Return โ Investment) รท Investment) ร 100
Standard formula used by professionals worldwide
Worked Example
Step-by-step
Invest 50,000 โ get back 65,000 โ ROI = 30%
Key Concepts
- Accuracy: Results are as accurate as the inputs you provide
- Units: Always use consistent units throughout your calculation
- Verification: Double-check important calculations before making decisions
- Professional advice: For major financial, health, or structural decisions, consult a qualified professional
Privacy and Security
- All calculations run entirely in your browser
- No data is sent to any server
- No sign-up or personal information required
- Your data stays private โ always
Frequently Asked Questions
What is a good ROI?
7-10% annually for stock markets. 15-30% for business investments.
What is annualised ROI?
ROI รท years held. 30% over 3 years = 10% per year.
ROI vs profit?
Profit is absolute. ROI is relative โ lets you compare investments of different sizes.