ROI Calculator
Calculate return on investment for smarter financial decisions
Investment Returns
Understanding ROI
ROI Formula:
ROI = (Final Value - Initial Investment) / Initial Investment × 100
📈 Total ROI
Overall return as a percentage of your initial investment, regardless of time period.
📅 Annualized ROI
Returns normalized to a yearly basis using compound annual growth rate (CAGR) formula.
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Frequently Asked Questions
What is ROI?
ROI (Return on Investment) measures the profitability of an investment relative to its cost. It's expressed as a percentage: ROI = (Gain - Cost) / Cost × 100.
What's a good ROI?
A good ROI varies by investment type. Stock market averages 7-10% annually. Real estate aims for 8-12%. Business investments often target 15-25% or higher.
What's the difference between ROI and profit?
Profit is an absolute dollar amount (revenue minus costs). ROI is a percentage that shows profit relative to investment size, making it easier to compare different investments.
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