ROI Calculator
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Understanding ROI (Return on Investment)
ROI is a performance measure used to evaluate the efficiency of an investment. It directly measures the return on a particular investment relative to its cost. The higher the ROI percentage, the more profitable the investment.
How to Calculate ROI
The basic formula for ROI is:
ROI = ((Final Value - Initial Investment) / Initial Investment) × 100%
When to Use ROI Calculator
An ROI calculator is useful in various scenarios:
- Evaluating potential business investments
- Comparing different investment opportunities
- Analyzing marketing campaign performance
- Assessing real estate investments
- Measuring project success
ROI Calculation Tips
- Include all costs in your initial investment figure
- Consider the time value of money for longer investments
- Account for ongoing maintenance or operational costs
- Compare ROI with industry benchmarks