ROI Calculator

Measure how much an investment gained relative to its cost.

How the Math Works

The ROI Calculator uses a straightforward formula to measure investment performance: ROI equals (final value minus initial value) divided by initial value, then multiplied by 100 to express it as a percentage. To calculate it, subtract what you originally invested from what you ended up with, divide that difference by your original investment amount, and convert to a percentage. For example, investing $1,000 and receiving $1,200 back gives you an ROI of 20%, calculated as (1200-1000)/1000*100.

Practical Applications

Use this calculator to evaluate the effectiveness of any investment decision, whether you're comparing different stocks, assessing business projects, or analyzing rental property returns. Simply enter your initial investment cost and the final value you expect or received, and the calculator instantly shows your return percentage. This helps you quickly compare multiple investment opportunities or track how your portfolio performs over time, enabling data-driven financial decisions.

Day-to-Day Use

In everyday life, ROI calculations help you make smarter financial choices like deciding whether to repair your kitchen for increased home value, evaluating if purchasing a car makes sense versus using public transportation, or determining if a certification course is worth the expense based on potential salary increases. The percentage format makes it easy to compare vastly different investments—whether you're deciding between saving $500 in a high-yield account or spending $200 on a small business marketing campaign, the ROI Calculator gives you a common metric to judge which option delivers better returns.

Worked example

$1,000 → $1,500 = 50% ROI.

FAQ