ROI Calculator
ROI is (final value - initial investment) / initial investment x 100.
Worked example
| Initial investment | $10,000 |
|---|---|
| Final value of investment | $12,500 |
| Return on Investment (ROI) | 25% |
| Net Profit | $2,500 |
How it is calculated
Net profit = final value - initial investment. ROI = net profit / initial investment x 100.
A negative ROI means the final value is lower than the amount invested.
Assumptions and limits
- ROI ignores how long the investment was held, so it cannot compare investments of different durations.
- Fees, taxes and dividends must be included in the final value yourself.
Educational estimate only; not financial, tax, legal or investment advice.
FAQ
How do I calculate ROI?
Subtract the initial investment from the final value, divide by the initial investment, then multiply by 100. For 10,000 growing to 12,500, ROI is 25%.
What is a good ROI?
It depends on the asset, risk and time held. ROI does not account for time, so compare it with annualised returns for longer periods.
Can ROI be negative?
Yes. If the final value is below the initial investment, net profit and ROI are negative.