Understanding your Return on Investment (ROI) is crucial for evaluating the profitability of any investment. ROI is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. ROI measures the amount of return on a particular investment, relative to the investment's cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment.
The formula for ROI is:
ROI = [(Current Value of Investment – Cost of Investment) / Cost of Investment] * 100
A positive ROI indicates that the investment has generated a profit, while a negative ROI indicates a loss. The higher the ROI percentage, the more profitable the investment.
This calculator will help you quickly determine the ROI for your investments. Simply enter the initial cost of your investment and its current value.