.roi-calculator-widget .calc-container {
background: #ffffff;
border: 1px solid #e0e0e0;
border-radius: 8px;
padding: 30px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
margin-bottom: 40px;
}
.roi-calculator-widget h2 {
margin-top: 0;
color: #2c3e50;
font-size: 24px;
margin-bottom: 20px;
border-bottom: 2px solid #3498db;
padding-bottom: 10px;
display: inline-block;
}
.roi-calculator-widget .input-group {
margin-bottom: 20px;
}
.roi-calculator-widget label {
display: block;
margin-bottom: 8px;
font-weight: 600;
color: #555;
}
.roi-calculator-widget input[type="number"] {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
transition: border-color 0.3s;
}
.roi-calculator-widget input[type="number"]:focus {
border-color: #3498db;
outline: none;
}
.roi-calculator-widget button.calc-btn {
background-color: #3498db;
color: white;
border: none;
padding: 15px 30px;
font-size: 18px;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
width: 100%;
transition: background-color 0.3s;
}
.roi-calculator-widget button.calc-btn:hover {
background-color: #2980b9;
}
.roi-calculator-widget .results-area {
margin-top: 30px;
background: #f8f9fa;
padding: 20px;
border-radius: 6px;
display: none;
border-left: 5px solid #27ae60;
}
.roi-calculator-widget .result-row {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
font-size: 18px;
}
.roi-calculator-widget .result-row.main-result {
font-size: 24px;
font-weight: bold;
color: #27ae60;
border-top: 1px solid #ddd;
padding-top: 10px;
margin-top: 10px;
}
.roi-calculator-widget .error-msg {
color: #e74c3c;
margin-top: 10px;
display: none;
font-weight: bold;
}
.roi-calculator-widget .article-section h3 {
color: #2c3e50;
margin-top: 30px;
}
.roi-calculator-widget .article-section p {
margin-bottom: 15px;
text-align: justify;
}
.roi-calculator-widget .article-section ul {
margin-bottom: 20px;
padding-left: 20px;
}
.roi-calculator-widget .article-section li {
margin-bottom: 8px;
}
@media (min-width: 600px) {
.roi-calculator-widget .form-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
.roi-calculator-widget .full-width {
grid-column: span 2;
}
}
function calculateROI() {
var investedInput = document.getElementById('initialInvestment');
var returnedInput = document.getElementById('returnedAmount');
var durationInput = document.getElementById('investmentDuration');
var resultsDiv = document.getElementById('roiResults');
var errorDiv = document.getElementById('roiError');
var annualizedRow = document.getElementById('annualizedRow');
var invested = parseFloat(investedInput.value);
var returned = parseFloat(returnedInput.value);
var years = parseFloat(durationInput.value);
// Validation
if (isNaN(invested) || isNaN(returned) || invested = 0) {
document.getElementById('displayProfit').style.color = '#27ae60';
document.getElementById('displayROI').style.color = '#27ae60';
} else {
document.getElementById('displayProfit').style.color = '#e74c3c';
document.getElementById('displayROI').style.color = '#e74c3c';
}
// Annualized Calculation
if (!isNaN(years) && years > 0) {
// Formula: ( (Final / Initial) ^ (1 / t) ) – 1
var annualized = (Math.pow((returned / invested), (1 / years)) – 1) * 100;
document.getElementById('displayAnnualized').innerText = annualized.toFixed(2) + '%';
annualizedRow.style.display = 'flex';
} else {
annualizedRow.style.display = 'none';
}
resultsDiv.style.display = 'block';
}
Understanding Your Return on Investment (ROI)
Return on Investment (ROI) is one of the most fundamental performance measurements in finance. It evaluates the efficiency of an investment or compares the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment's cost.
How the ROI Formula Works
The basic formula for calculating ROI is relatively simple:
ROI = (Net Profit / Cost of Investment) x 100
Where Net Profit is the final value of the investment minus the initial cost. For example, if you buy a stock for $1,000 and sell it for $1,200, your net profit is $200. Dividing $200 by the initial $1,000 gives you 0.20, or a 20% ROI.
Why Annualized ROI Matters
While total ROI tells you how much you made, it doesn't account for time. A 20% return over 1 year is fantastic, but a 20% return over 10 years is poor (less than 2% per year). This calculator provides the Annualized ROI when you input the investment duration, allowing you to compare investments held for different time periods on an equal footing.
Example Calculation
Imagine you invest $10,000 in a real estate renovation:
- Initial Investment: $10,000
- Final Sale Value: $15,000
- Time Period: 3 Years
Your Total ROI would be 50%. However, your Annualized ROI (Compound Annual Growth Rate) would be approximately 14.47%, which is the effective rate your money grew each year to reach that total.