Return on Investment (ROI) Calculator

Calculators

Mortgage CalculatorMortgage Calculator TVM CalculatorTime Value of Money Calculator ROI CalculatorReturn on Investment Calculator Compound Interest CalculatorCompound Interest Calculator NPV CalculatorNet Present Value Calculator tip calculatorTip Calculator bond calculatorBond Calculator stock calculatorsStock Calculators
  • Gain or Loss:
  • ROI:
  • Annualized ROI:

Return on Investment (ROI) Concept


Return on Investment

Gain or loss, which is generated on an investment relative to invested amount of money, can be measured by return on investment (ROI) [1]. So, ROI provides companies or people to measure their gain or loss, return on investment, and annualized return on investment.

ROI Formula - How to Calculate ROI

Let

\(F\) = Income
\(I\) = Initial Investment
\(N\) = Number of Years

\(P\) = Gain or Loss
\(R\) = Return on Investment
\(R_a\) = Annualized Return on Investment

We have

\[ P = F - I \]
\[ R = 100 \times \frac{P}{I} \]
\[ R_a = \frac{R}{N} \]

Examples

Example 1

Input

Investment = 2000
Income = 1500
Years = 3.5

Output

Gain or Loss = -500
ROI = -25%
Annualized ROI = -7.143%

Example 2

Input

Investment = 1000
Income = 1200
Years = 2

Output

Gain or Loss = 200
ROI = 20%
Annualized ROI = 10%

References

1. Return on investment (ROI) (n.d.). Retrieved June 13, 2017, from http://www.investinganswers.com/financial-dictionary/technical-analysis/return-investment-roi-1100