ROI Calculator

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Evaluating Financial Success with ROI

Return on Investment (ROI) is the ultimate metric for evaluating the profitability of an investment. Whether you are buying stocks on Wall Street, purchasing rental real estate, or funding a US marketing campaign for your small business, our ROI Calculator gives you a clear, percentage-based look at your success.

How ROI is Calculated

The mathematical formula for ROI is universal and beautifully simple:

ROI = [(Net Profit) / Cost of Investment] × 100

By converting your raw dollar profit into a percentage, you can compare the efficiency of wildly different investments. For example, making $100 on a $1,000 investment (10% ROI) is far more efficient than making $100 on a $10,000 investment (1% ROI).

Frequently Asked Questions

What is a "good" ROI?

A "good" ROI depends entirely on the risk profile. For a totally risk-free US Treasury Bond, a 4% ROI is excellent. For a highly volatile tech startup investment, investors might demand a 30% ROI to justify the risk.

Does ROI account for time?

Traditional ROI does not factor in time. A 100% ROI looks incredible, but if it took 40 years to achieve, it's actually a terrible investment. For time-based evaluations, investors use "Annualized ROI".