ROI Calculator
Calculate profitability.
Explanation
ROI (Return on Investment) measures the profitability of a project or investment. It is the ratio between net profit and cost. ### Formula **ROI (%) = ((Final Value - Initial Cost) / Initial Cost) x 100**. ### Interpretation - **ROI > 0%**: Profitable. - **ROI < 0%**: Loss. - **ROI = 100%**: Doubled your money. ### Example Buy stock for $1000. Sell for $1200. Profit = $200. ROI = (200 / 1000) x 100 = 20%.
Examples
- Ad Campaign: Cost $500, Sales $2000. Net Profit $1500. ROI = 300%.
- Real Estate: Down payment $20k, Annual Cashflow $2k. Annual ROI = 10%.
FAQ
ROI vs ROE?
ROI looks at total investment. ROE (Return on Equity) looks only at your personal cash invested (leveraged).
Timeframe?
ROI is usually total return. Annualized ROI is better for comparing long vs short term investments.
Disclaimer
Financial results are estimates and do not constitute investment advice.