Calculate your Return on Investment (ROI) to measure the profitability of your investments and make informed financial decisions.
Follow these simple steps to understand and calculate your Return on Investment
Calculate the total amount you initially invested, including purchase price, fees, and other upfront costs.
Determine the current or final value of your investment, including any returns, dividends, or appreciation.
Include any ongoing costs like maintenance fees, taxes, or other expenses related to the investment.
Use the formula: ROI = (Net Profit / Total Investment) × 100% to calculate your return percentage.
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Get accurate ROI calculations with support for various investment scenarios and time periods.
Quickly evaluate multiple investment options without manual calculations or complex spreadsheets.
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Find answers to common questions about ROI calculation
ROI (Return on Investment) is a performance measure used to evaluate the efficiency or profitability of an investment. It's important because it helps investors compare the efficiency of different investments and make informed decisions about where to allocate resources.
ROI is calculated using the formula: ROI = (Net Profit / Total Investment) × 100%. Net profit is the final value of the investment minus the initial investment and any additional costs.
A "good" ROI varies by industry, risk level, and investment type. Generally, an ROI of 7-10% is considered good for stock market investments, while real estate might aim for 10-15%. It's important to compare ROI to benchmarks in your specific industry.
ROI shows the total return over the entire investment period, while annualized ROI converts that return to an annual rate, making it easier to compare investments with different timeframes.
Basic ROI calculations do not account for the time value of money. For investments spanning multiple years, consider using metrics like Internal Rate of Return (IRR) or Net Present Value (NPV) that do factor in the time value of money.
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