Calculator guide
Measure a simple return on investment by comparing gain or loss with the original cost.
Formula or method
ROI = (final value − initial investment) / initial investment × 100%.
How to use this calculator
- Enter the amount originally invested.
- Enter the final value or proceeds.
- Review the percentage and dollar gain or loss; include costs when known.
Worked example
An investment rising from $2,000 to $2,300 has ROI=(300/2000)×100 = 15%.
Understanding the result
A positive percentage means the final value exceeds the starting value. ROI does not show how long the investment took or its risk.
Limitations and assumptions
- A simple ROI omits timing, reinvested cash flows, taxes, inflation, and fees.
- A zero or negative initial investment cannot produce a meaningful percentage.
Frequently asked questions
Is ROI the same as annual return?
No. Annualized return adjusts for time; simple ROI does not.
Should fees be included?
Yes, subtract relevant fees from proceeds or add them to cost for a more useful estimate.
Can ROI compare two projects?
Only cautiously: compare duration, risk, and cash-flow timing too.
Sources
Educational estimate only; not financial advice or a performance guarantee.