Return on Investment Calculator
Calculate the profitability and efficiency of your investments with this ROI calculator.
Return on Investment
What does this mean?
Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment. ROI is calculated by dividing the net profit (final value minus initial investment) by the initial investment cost, then expressing it as a percentage.
A higher ROI means the investment's efficiency is favorable. ROI is a simple and versatile metric that can be used to compare the profitability of different investments or evaluate a single investment's performance.
Why Retail Investors Should Use Return on Investment
Simple and Intuitive
ROI is one of the simplest investment metrics to understand and calculate. It gives you a clear percentage that shows how much your investment has grown relative to its cost, making it easy to quickly assess performance without complex calculations.
Compare Different Investments
ROI provides a standardized way to compare the performance of completely different types of investments. Whether you're looking at stocks, real estate, or business ventures, ROI gives you a common metric to evaluate which investments are delivering the best returns.
Identify Profitable Opportunities
By calculating the ROI of your past investments, you can identify patterns and determine which types of investments have been most profitable for you. This insight helps you make more informed decisions about where to allocate your capital in the future.