Calculate Your Return on Investment
The ROI Calculator helps you evaluate the profitability of your investments by calculating the return on investment (ROI) percentage. This metric is essential for investors and businesses to understand how well their investments are performing relative to the amount invested. By using this calculator, you can make informed decisions about future investments based on past performance.
To use this calculator, you need to input the total amount returned from your investment and the amount you invested annually. The calculator will then compute the ROI, giving you a clear percentage that indicates how much profit or loss you made on your investment.
Formula
The formula used to calculate ROI is: \[ \text{ROI} = \left( \frac{\text{Returned Amount} - \text{Annual Investment}}{\text{Annual Investment}} \right) \times 100 \] Where:
- Returned Amount is the total money received from the investment.
- Annual Investment is the total money invested annually.
How to use
- Enter the total amount returned from your investment in the "Returned Amount" field.
- Input the total annual investment amount in the "Annual Investment" field.
- Click the calculate button to see your ROI percentage.
FAQ
What does ROI mean?
ROI stands for Return on Investment, which measures the gain or loss generated relative to the investment cost.
How is ROI calculated?
ROI is calculated by taking the difference between the returned amount and the annual investment, dividing it by the annual investment, and then multiplying by 100 to get a percentage.
Why is ROI important?
ROI is important because it helps investors assess the efficiency and profitability of their investments, allowing for better financial decision-making.