Return on Investment (ROI) Calculator
.roi-calculator-widget {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 20px auto;
padding: 25px;
background: #ffffff;
border: 1px solid #e0e0e0;
border-radius: 8px;
box-shadow: 0 4px 12px rgba(0,0,0,0.05);
}
.roi-calc-row {
display: flex;
flex-wrap: wrap;
margin-bottom: 20px;
gap: 20px;
}
.roi-calc-group {
flex: 1;
min-width: 250px;
}
.roi-calc-group label {
display: block;
margin-bottom: 8px;
font-weight: 600;
color: #333;
}
.roi-calc-group input {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.roi-calc-btn {
width: 100%;
padding: 15px;
background-color: #0073aa;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.3s;
}
.roi-calc-btn:hover {
background-color: #005177;
}
.roi-results-area {
margin-top: 30px;
padding: 20px;
background-color: #f9f9f9;
border-radius: 6px;
border-left: 5px solid #0073aa;
display: none;
}
.roi-result-item {
margin-bottom: 10px;
font-size: 16px;
color: #444;
display: flex;
justify-content: space-between;
border-bottom: 1px solid #eee;
padding-bottom: 8px;
}
.roi-result-item:last-child {
border-bottom: none;
margin-bottom: 0;
}
.roi-result-value {
font-weight: 700;
color: #2c3e50;
}
.roi-result-value.positive {
color: #27ae60;
}
.roi-result-value.negative {
color: #c0392b;
}
.seo-content {
max-width: 800px;
margin: 40px auto;
font-family: inherit;
line-height: 1.6;
color: #333;
}
.seo-content h2 {
color: #2c3e50;
border-bottom: 2px solid #eee;
padding-bottom: 10px;
margin-top: 30px;
}
.seo-content h3 {
color: #444;
margin-top: 25px;
}
.seo-content p {
margin-bottom: 15px;
}
.seo-content ul {
margin-bottom: 20px;
padding-left: 20px;
}
.seo-content li {
margin-bottom: 8px;
}
Understanding Return on Investment (ROI)
Return on Investment (ROI) is one of the most widely used financial metrics for evaluating the efficiency of an investment or comparing the efficiency of a number of different investments. ROI measures the amount of return on an 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, and the result is expressed as a percentage or a ratio.
How to Calculate ROI
The standard formula for calculating the Return on Investment is straightforward:
ROI = (Net Profit / Cost of Investment) x 100
Where:
- Net Profit: The total amount returned minus the initial amount invested.
- Cost of Investment: The initial capital risked.
Why Annualized ROI Matters
While simple ROI tells you the total growth, it doesn't account for time. A 20% return over 1 year is fantastic, but a 20% return over 10 years is poor. This is why our calculator includes an Annualized ROI metric. This figure calculates the geometric average amount of money earned by an investment each year over a given time period. It allows for a fair comparison between investments held for different lengths of time.
Example Calculation
Let's say you invest $10,000 in a stock portfolio. After 5 years, you sell the portfolio for $15,000.
- Net Profit: $15,000 – $10,000 = $5,000
- Total ROI: ($5,000 / $10,000) x 100 = 50%
- Annualized ROI: Since this growth happened over 5 years, the compound annual growth rate is approximately 8.45% per year.
Factors Influencing ROI
When using this calculator for business or personal finance, consider that "Cost of Investment" should include all expenses associated with the project, including transaction fees, maintenance costs, and taxes. Similarly, "Amount Returned" should be the net proceeds after selling the asset or the total revenue generated.
function calculateROI() {
// Get input values using var
var investedInput = document.getElementById('investedAmount');
var returnedInput = document.getElementById('returnedAmount');
var periodInput = document.getElementById('investmentPeriod');
var resultBox = document.getElementById('roiResultBox');
// Parse values
var invested = parseFloat(investedInput.value);
var returned = parseFloat(returnedInput.value);
var years = parseFloat(periodInput.value);
// Basic Validation
if (isNaN(invested) || isNaN(returned) || invested 0) {
annualizedROI = (Math.pow((returned / invested), (1 / years)) – 1) * 100;
} else {
// If years is 0 or invalid, we cannot calculate annualized properly,
// but for simple cases where time isn't a factor, it might just equal total if 0) {
displayAnnualized.innerText = annualizedROI.toFixed(2) + "%";
} else {
displayAnnualized.innerText = "N/A";
}
// Styling for positive/negative results
if (profit >= 0) {
displayProfit.className = "roi-result-value positive";
displayTotal.className = "roi-result-value positive";
displayAnnualized.className = "roi-result-value positive";
} else {
displayProfit.className = "roi-result-value negative";
displayTotal.className = "roi-result-value negative";
displayAnnualized.className = "roi-result-value negative";
}
// Show result box
resultBox.style.display = "block";
}