Return on Investment (ROI) is a key financial metric used to evaluate the profitability of an investment. This calculator helps you determine the ROI by comparing the gain or loss relative to the initial investment cost.
Return on Investment (ROI) Calculator
How to Calculate ROI?
The basic ROI formula is:
ROI = (Net Profit / Investment Cost) × 100
Common ROI Calculations
- Real Estate ROI
- Marketing ROI
- Short-Term Rental ROI
- IRA Rate of Return
- Annual Rate of Return
FAQs on ROI Calculation
1. How to compute ROI return of investment?
Use the formula ROI = (Net Profit / Investment Cost) × 100.
2. How do you calculate 7% ROI?
To achieve a 7% ROI, divide your net profit by the investment cost and multiply by 100.
3. How to get a 10% return on investment?
Invest in assets that yield a 10% annual return, such as stocks, real estate, or mutual funds.
4. What does 70% ROI mean?
It means the investment has gained 70% of its original cost in profit.
5. Is 30% a good ROI?
Yes, a 30% ROI is generally considered excellent, depending on the industry.
6. Is ROI the same as profit?
No, ROI is a percentage that represents profitability, while profit is the actual monetary gain.
7. Is ROI good or bad?
ROI is a metric; a positive ROI is good, while a negative ROI indicates a loss.
8. What is 15% return on investment?
It means your investment has earned 15% of its initial cost as profit.
9. What is ROI in P&L?
ROI in Profit & Loss (P&L) refers to the return generated from investments compared to overall expenses.