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ROI calculator

Calculate return on investment (ROI) from the initial investment and the final value obtained.

Espacio publicitario
Net gain
200
ROI
20%
Espacio publicitario

How ROI is calculated

ROI (return on investment) measures the profit obtained relative to the money invested. First, the net gain is calculated by subtracting the initial investment from the final value:

net gain = final value − initial investment

Then, ROI is expressed as a percentage by dividing the net gain by the initial investment and multiplying by 100:

ROI (%) = (net gain ÷ initial investment) × 100

Worked example

If you invest $1,000 in a project and, after some time, the final value (including what you recovered) is $1,200, the net gain is 1,200 − 1,000 = $200, and the ROI is (200 ÷ 1,000) × 100 = 20%.

Frequently asked questions

What does a 20% ROI mean?
It means that for every dollar invested you earned $0.20 in net profit — you recovered your initial investment plus an additional 20% as profit.
What if the ROI is negative?
A negative ROI means the final value obtained is lower than the initial investment, meaning you had a loss instead of a gain.
Does ROI account for the length of the investment?
No, the ROI calculated here is a simple measure that doesn't factor in time. To compare investments with different durations, it's best to annualize the result or use metrics like IRR.
Should I include fees or taxes in the final value?
Yes, for a realistic ROI it's best to use the net amount you actually receive as the final value, after deducting fees, expenses and taxes related to the investment.

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