ROI Calculator
Measure return on investment as a simple percentage of what you put in.
Return on investment
35.00%
Net profit
$3,500
Total cost basis
$10,000
Key insight
- Net profit
- $3,500
- Return Multiple
- 1.35×
- Profit per $1 Invested
- $0.35
How it's calculated
Formula
ROI = (Net Profit ÷ Total Cost) × 100%How it works
Written in full, ROI = ((Value Received − Total Cost) ÷ Total Cost) × 100%. It measures profit relative to what you put in: subtract every cost from what you got back, divide by the total cost, and express it as a percentage. Because there's no time in the formula, ROI tells you how much an investment returned — not how fast.
Variables
- Total cost
- Amount invested plus any additional costs
- Value received
- What the investment is now worth or sold for
- ROI
- Percentage return relative to the total amount invested.
Worked example
Amount Invested $10,000 Value Received $13,500 Additional Costs $0 Total Cost = $10,000 + $0 = $10,000 Net Profit = $13,500 − $10,000 = $3,500 ROI = ($3,500 ÷ $10,000) × 100 = 35% Result The investment generated a $3,500 profit on a total investment of $10,000, producing an ROI of 35%.
Frequently asked questions
Does ROI account for how long I held the investment?
No. ROI is a total return, not annual. To compare investments held for different periods, use CAGR or Annualized Return.
Should I include fees and taxes?
Include costs like fees and commissions in the cost basis for an accurate figure. Taxes depend on your situation and aren't included here.
Can ROI be negative?
Yes. If the value received is less than the total cost, ROI is negative — the investment lost money.
Is a higher ROI always better?
Not necessarily. A high ROI earned over ten years may be worse than a smaller ROI earned in one. Always weigh ROI against time and risk.
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