ROI (Return on Investment) Calculator

Assessing the performance of your investments is crucial to actively succeed and make money consistently. Using this tool you can calculate your ROI, one of the most common metrics of understanding the success of a position or investment.

Required Information

Invested Amount ($):

Returned Amount ($):

Results:

What it is

What is ROI?

Create Date: September 16, 2024

Last Modified Date: December 16, 2024

ROI stands for Return On Investment, it is a term used to clearly outline the performance of an investment. It will be a percentage that signifies either the gain or loss in the value of said investment.

How ROI is Calculated

ROI is calculated with just two variables, initial investment value and ending investment value. The formula for ROI is:

An image of the formula used to calculate the ROI of an investment or similar situation.

ROI = (Total Value Change / Initial Invested Amount) * 100

Where:

ROI = Return on investment

TVC = Total value change

IA = Initial investment amount

Understanding Your Results

With this tool you will get two different results back, your ROI percent and your total value change.

ROI Percent - This is the percent change in the value of the investment which can be both positive or negative. The higher this number is the better you have got in return for your investment.

Total Value Change - This is the plain dollar amount change between the starting and ending value of the investment.

How to Use the ROI Calculator

Our ROI tool is very easy to use, follow these few steps:

Enter your initial investment amount, do not add a dollar sign simply enter the numerical amount.

Enter your returned amount, or ending value of the investment, do not enter the dollar sign simply enter the numerical amount

Hit the calculate button and get your ROI percent and total value change within seconds!

Calculation Example

We have a number of different investments that we have made over the years but we want to now find the total ROI for our account. Initially, we had invested $45,000 into the market. Now, that account is worth $219,000. We can use this tool to help us understand what our ROI has been. We will enter 45,000 into the invested amount field and then 219,000 into the returned amount field. We can now hit calculate and learn that we have an ROI of 386.67%, which is really good! In total, the account appreciated by $174,000.

Return on Investment - Frequently Asked Questions

A ROI of 20% means an investment gained value by a total of 20%. For example, if you invested $1,000 into a stock it would have gained 20% to now be worth $1,200.

It is hard to say what a good ROI is since the number varies based on the investment type. A good ROI on a stock will not be the same as a good ROI from owning a business. If we had to speak generally, anything over 10% is considered good, especially in the realm of stocks.

A 30% ROI is possible but will likely require an extremely risky investment or venture.

Yes, if you have an ROI of 100% you have doubled your money, or value of the investment.

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