ROI Calculator
Calculate the exact Return on Investment (ROI) percentage and net gains from any capital expenditure or investment project.
Calculator Inputs
LiveHow to use the ROI Calculator
- 1Enter the total capital amount invested.
- 2Enter the total gross amount returned (or final value of the asset).
- 3Review your net gain/loss, ROI percentage, and total return multiple.
How ROI is Calculated
ROI measures the efficiency and profitability of an investment by comparing net gain against initial cost.
Amount Invested is the cost basis, and Amount Returned is the total final cash returned.
- 1Net Profit = $42,000 - $25,000 = $17,000
- 2ROI = ($17,000 / $25,000) × 100 = 68.00%
- 3Multiple = $42,000 / $25,000 = 1.68x
What affects ROI results
- Holding period or time frame of the project.
- Hidden operational maintenance or financing expenses.
- Taxes on realized capital gains.
Frequently Asked Questions
What is a good ROI for business investments?
An annual ROI exceeding the company cost of capital (typically 10-15%) is positive, while high-risk ventures often target 25% or higher.
Does standard ROI factor in the time value of money?
Standard simple ROI does not factor in annual compounding; for multi-year investments, consider our CAGR calculator as well.
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