ROI Calculator

Measure return on investment from the amount invested and the final value. See net profit, ROI percentage and the value multiple in one result.

How ROI is calculated

ROI compares the net gain from an investment with the original amount invested. The basic formula is (final value − investment cost) ÷ investment cost × 100.

ROI example

If you invest $10,000 and the investment is later worth $12,500, the net profit is $2,500. Dividing that gain by the original $10,000 investment produces a 25% ROI and a 1.25× value multiple.

What is a good ROI?

There is no universal good ROI. The useful comparison depends on time, risk, financing costs and realistic alternatives. A 20% return over five years is materially different from a 20% return earned in one year. Use ROI as a comparison metric, then evaluate the time period and risk separately.

ROI vs profit margin

ROI measures a gain relative to the money invested. Profit margin measures profit relative to revenue. For a business sale or project, use the Profit Margin Calculator when revenue and cost are the main inputs, or the Break-Even Calculator when you need to know how many units must be sold to cover costs.

Use ROI for decisions, not guarantees

This calculator is a planning tool. Taxes, transaction costs, financing, inflation and the time value of money can materially change an investment outcome and are not automatically included.

Keep working the numbers

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