What is ROI Calculator?
ROI (Return on Investment) is a financial ratio used to measure the efficiency and profitability of an investment. ROI calculates the percentage of profit or loss relative to the initial investment cost, providing a clear picture of how well your capital is working. This metric is very popular because it's simple, easy to understand, and can be applied to various types of investments and business projects. Kalkulab's ROI Calculator serves as a practical tool for investors and business owners to calculate the rate of return on investment quickly and accurately. Whether you are a stock investor, property owner, SME operator, or entrepreneur evaluating various investment options, this calculator will help you make informed decisions...
ROI (Return on Investment) Formula
ROI = ((Final Value - Investment Cost) / Investment Cost) × 100%Variables:
- ROIReturn on InvestmentRate of return on investment(e.g.: 20%)💡 Measure capital efficiency
- Final ValueTotal Investment Value TodaySelling price or current value(e.g.: $120,000)💡 Calculate investment returns
- Investment CostInitial Capital / Total CostTotal costs incurred(e.g.: $100,000)💡 Base for ROI calculation
- Net ProfitNet ProfitFinal Value - Investment Cost(e.g.: $20,000)💡 Determine absolute profit
Categories:
How to Use the ROI Calculator
Enter your initial capital and final investment value to get the ROI percentage instantly.
- 1
Enter Initial Capital
Enter the total principal amount or cost invested upfront.
- 2
Enter Final Value
Enter the current investment value or expected final selling price.
- 3
View ROI Result
The calculator will display the ROI percentage, net profit, and profit margin.
- 4
Additional Analysis (Optional)
Use additional features to calculate break-even time.
💡 Tip:
- •Include all related costs (transaction fees, taxes, etc.) for accurate ROI.
- •Basic ROI does not account for time; use CAGR for long-term investments.
- •Compare ROI with inflation to determine if the investment is truly profitable.
Examples
Example 1: Stock Investment
Andi buys 1,000 shares at $10 per share. A year later, the share price rises to $12.50 per share. What is the ROI?
- 1.Initial capital = 1,000 × $10 = $10,000
- 2.Final value = 1,000 × $12.50 = $12,500
- 3.Profit = $12,500 - $10,000 = $2,500
- 4.ROI = (2,500 / 10,000) × 100%
Andi's stock investment yields 25% ROI in one year, which is excellent for stock investment.
Example 2: Property Investment for Business
A business buys a shop for $800,000. After 3 years, the shop is sold for $1,100,000. What is the ROI?
- 1.Capital = $800,000
- 2.Selling price = $1,100,000
- 3.Profit = $1,100,000 - $800,000 = $300,000
- 4.ROI = (300,000 / 800,000) × 100% = 37.5%
- 5.ROI per year = 37.5% ÷ 3 years = 12.5%/year
This property investment yields a total ROI of 37.5% over 3 years, or an average of 12.5% per year.