Calculate simple return on investment and estimated profit from the amount invested and the amount returned.
Investment Return
Net Profit: $0.00
How Return on Investment Is Calculated
The calculator subtracts the initial investment from the amount returned to estimate net profit. It then divides that profit by the initial investment and expresses the result as a percentage. A positive percentage indicates that the entered return is above the entered cost; a negative percentage indicates a loss on those inputs.
What ROI does not tell you
This simple ratio does not account for how long the investment was held, cash-flow timing, risk, taxes, inflation, financing costs, or opportunity cost. Two projects with the same ROI can have very different risk and time profiles.
Financial note: ROI is one comparison measure, not a complete investment analysis or personal financial recommendation.
Example and limitations
A positive ROI means the amount returned exceeds the initial investment; a negative ROI indicates a loss. The calculation is a simple comparison and does not annualize returns or adjust for timing.
Scope: This simple ROI comparison does not account for cash-flow timing, financing costs, taxes, inflation, or risk. Compare like-for-like periods before using it to assess alternatives.