Understanding your Return on Investment (ROI) is crucial for evaluating the profitability of any investment. The ROI formula helps you measure the efficiency of your investment relative to its cost. A positive ROI indicates that your investment has generated profit, while a negative ROI suggests a loss.
The basic formula for ROI is:
ROI = (Net Profit / Cost of Investment) * 100
Where:
Net Profit is the total gain from the investment minus the total cost of the investment.
Cost of Investment is the total amount spent to acquire or maintain the investment.
This calculator will help you quickly determine the ROI for any investment.
function calculateROI() {
var netProfitInput = document.getElementById("netProfit");
var costOfInvestmentInput = document.getElementById("costOfInvestment");
var resultDiv = document.getElementById("result");
var netProfit = parseFloat(netProfitInput.value);
var costOfInvestment = parseFloat(costOfInvestmentInput.value);
if (isNaN(netProfit) || isNaN(costOfInvestment)) {
resultDiv.innerHTML = "Please enter valid numbers for both fields.";
return;
}
if (costOfInvestment === 0) {
resultDiv.innerHTML = "Cost of Investment cannot be zero.";
return;
}
var roi = ((netProfit – costOfInvestment) / costOfInvestment) * 100;
if (isNaN(roi)) {
resultDiv.innerHTML = "Could not calculate ROI. Please check your inputs.";
} else {
resultDiv.innerHTML = "Return on Investment (ROI): " + roi.toFixed(2) + "%";
}
}
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