This calculator helps you estimate the Return on Investment (ROI) for your business ventures, investments, or projects. ROI is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments.
Understanding Return on Investment (ROI)
Return on Investment (ROI) is a fundamental metric for assessing the profitability of an investment. It is expressed as a percentage and indicates how much money you have made or lost relative to the initial amount invested. The basic formula for ROI is:
ROI = ((Current Value of Investment – Cost of Investment) / Cost of Investment) * 100
A positive ROI signifies that the investment has generated a profit, while a negative ROI indicates a loss. For example, if you invest $10,000 and your investment grows to $15,000, your ROI would be calculated as:
This 50% ROI means that for every dollar invested, you received $1.50 back, resulting in a profit of $0.50 per dollar invested.
When using the calculator, ensure you accurately input the total cost of your initial investment (including all associated expenses) and the current value or total profit generated by that investment. This will provide a clear picture of your investment's performance.
function calculateROI() {
var investmentCostInput = document.getElementById("investmentCost");
var currentValueInput = document.getElementById("currentValue");
var roiResultDiv = document.getElementById("roiResult");
var investmentCost = parseFloat(investmentCostInput.value);
var currentValue = parseFloat(currentValueInput.value);
if (isNaN(investmentCost) || isNaN(currentValue) || investmentCost <= 0) {
roiResultDiv.innerHTML = "Please enter valid numbers for investment cost and current value. Investment cost must be greater than zero.";
return;
}
var profit = currentValue – investmentCost;
var roi = (profit / investmentCost) * 100;
var formattedROI = roi.toFixed(2);
var formattedProfit = profit.toFixed(2);
roiResultDiv.innerHTML =
"