Enter Investment cost ($), Return amount ($) and Time period (years) and the remaining scenario settings to review return on investment with this tool. ROI expresses net gain as a share of cost.
ROI = [(Return or gain − Cost) ÷ Cost] × 100The calculation links Investment cost ($), Return amount ($) and Time period (years) to return on investment. ROI expresses net gain as a share of cost. It is not automatically annualized and does not reveal when cash was received.
Enter Investment cost ($), Return amount ($) and Time period (years) and the remaining scenario settings to review return on investment with this tool. ROI expresses net gain as a share of cost.
Compare an investment’s net gain with its starting cost. Keep the return amount and the original capital distinct when entering a sale value or total proceeds.
ROI expresses net gain as a share of cost. It is not automatically annualized and does not reveal when cash was received.
Prepare Investment cost ($), Return amount ($), Time period (years), Include ongoing costs and Annual ongoing cost ($). Check whether the return field expects total proceeds or net profit, then use the same holding period for comparisons.
ROI expresses net gain as a share of cost. It is not automatically annualized and does not reveal when cash was received. Taxes, fees, additional contributions and unequal holding periods can make simple ROI comparisons misleading. Risk is not captured by the percentage.
Use the full settings in the worked-example table. They produce Return on Investment: 50.00%; Net profit: 5000. Compare the method and units as well as the displayed number.
The displayed relationship is ROI = [(Return or gain − Cost) ÷ Cost] × 100 Check whether the return field expects total proceeds or net profit, then use the same holding period for comparisons.
Taxes, fees, additional contributions and unequal holding periods can make simple ROI comparisons misleading. Risk is not captured by the percentage. Check the original measurement, source data and the convention required by the task.
Worked roi calculator example. Set Investment cost ($) = 10000; Return amount ($) = 15000; Time period (years) = 1; Include ongoing costs = No; Annual ongoing cost ($) = 500. The corresponding output is Return on Investment: 50.00%; Net profit: 5000. ROI expresses net gain as a share of cost.
Compare an investment’s net gain with its starting cost. Keep the return amount and the original capital distinct when entering a sale value or total proceeds.
Check whether the return field expects total proceeds or net profit, then use the same holding period for comparisons.
| Field | Example value | Entry check |
|---|---|---|
| Investment cost ($) | 10000 | Check whether this amount is one-time, monthly or annual before entering it. |
| Return amount ($) | 15000 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
| Time period (years) | 1 | Use the period unit in the field label; months and years are not interchangeable. |
| Include ongoing costs | No | Check whether this amount is one-time, monthly or annual before entering it. |
| Annual ongoing cost ($) | 500 | Check whether this amount is one-time, monthly or annual before entering it. |
Relationship used for this example: ROI = [(Return or gain − Cost) ÷ Cost] × 100
ROI expresses net gain as a share of cost. It is not automatically annualized and does not reveal when cash was received.
| Output | Displayed result |
|---|---|
| Return on Investment | 50.00% |
| Net profit | 5000 |
With these settings, return on investment is 50.00%. Use the same units and calculation mode when reproducing this example.
ROI expresses net gain as a share of cost. It is not automatically annualized and does not reveal when cash was received. Taxes, fees, additional contributions and unequal holding periods can make simple ROI comparisons misleading. Risk is not captured by the percentage.
Replace the illustrative investment cost ($) value (10000) with your own value, then complete the other inputs for the same scenario. Check whether the return field expects total proceeds or net profit, then use the same holding period for comparisons.