#roi-calculator-wp {
font-family: sans-serif;
max-width: 600px;
margin: 20px auto;
padding: 20px;
border: 1px solid #ddd;
border-radius: 8px;
background-color: #f9f9f9;
}
#roi-calculator-wp h2 {
text-align: center;
color: #333;
margin-bottom: 20px;
}
#roi-calculator-wp .form-group {
margin-bottom: 15px;
}
#roi-calculator-wp label {
display: block;
margin-bottom: 5px;
font-weight: bold;
color: #555;
}
#roi-calculator-wp input[type="number"] {
width: calc(100% – 22px);
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
box-sizing: border-box;
}
#roi-calculator-wp button {
display: block;
width: 100%;
padding: 10px 15px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
font-size: 16px;
cursor: pointer;
transition: background-color 0.3s ease;
}
#roi-calculator-wp button:hover {
background-color: #0056b3;
}
#roi-calculator-wp #result {
margin-top: 20px;
padding: 15px;
border: 1px solid #d4edda;
background-color: #d4edda;
color: #155724;
border-radius: 4px;
text-align: center;
font-size: 18px;
font-weight: bold;
}
#roi-calculator-wp .article-content {
margin-top: 30px;
border-top: 1px solid #eee;
padding-top: 20px;
color: #333;
line-height: 1.6;
}
#roi-calculator-wp .article-content h3 {
margin-bottom: 10px;
color: #007bff;
}
Understanding Return on Investment (ROI)
Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment. It is used to compare the efficiency of a number of different investments. ROI is typically expressed as a percentage and is calculated by dividing the net profit from an investment by its cost.
The basic formula for ROI is:
ROI = ((Final Value – Initial Investment) / Initial Investment) * 100%
For investments held over a period, it's often useful to annualize the ROI to understand the average yearly return. This is calculated by dividing the total ROI by the investment period in years.
Annualized ROI = (Total ROI / Investment Period in Years)
A positive ROI indicates that the investment generated a profit, while a negative ROI signifies a loss. Understanding ROI helps investors make informed decisions about where to allocate their capital.
Example Calculation:
Let's say you invested $10,000 (Initial Investment) in a stock. After 2 years (Investment Period), the stock's value grew to $12,000 (Final Value).
Net Profit: $12,000 – $10,000 = $2,000
Total ROI: ($2,000 / $10,000) * 100% = 20%
Annualized ROI: 20% / 2 years = 10% per year
This means your investment yielded a 20% return over two years, or an average of 10% annually.
function calculateROI() {
var initialInvestment = parseFloat(document.getElementById("initialInvestment").value);
var finalValue = parseFloat(document.getElementById("finalValue").value);
var investmentPeriod = parseFloat(document.getElementById("investmentPeriod").value);
var resultDiv = document.getElementById("result");
if (isNaN(initialInvestment) || isNaN(finalValue) || isNaN(investmentPeriod)) {
resultDiv.innerHTML = "Please enter valid numbers for all fields.";
return;
}
if (initialInvestment <= 0) {
resultDiv.innerHTML = "Initial Investment must be greater than zero.";
return;
}
if (investmentPeriod <= 0) {
resultDiv.innerHTML = "Investment Period must be greater than zero.";
return;
}
var netProfit = finalValue – initialInvestment;
var totalROI = (netProfit / initialInvestment) * 100;
var annualizedROI = totalROI / investmentPeriod;
var resultHTML = "
" + annualizedROI.toFixed(2) + "% per year";
resultDiv.innerHTML = resultHTML;
}