Calculator inputs

Enter the total gain (or final value) and the cost of your investment to calculate ROI and net profit.

Enter the amount in the currency you are using. Keep the same currency across money fields.

The amount invested or total cost used as the starting point for ROI.

Controls rounding in the displayed result only; it does not change the underlying calculation.

Result
Enter a value to begin

Formula

Net Profit = Gain - Cost
ROI % = ((Gain - Cost) / Cost) x 100

ROI measures the efficiency of an investment. A positive ROI means you earned more than you spent, while a negative ROI indicates a loss. The higher the ROI percentage, the more profitable the investment relative to its cost.

Worked examples

Gain $15,000, cost $10,000: Net profit = $5,000, ROI = 50.00%

Gain $8,000, cost $5,000: Net profit = $3,000, ROI = 60.00%

Gain $22,500, cost $25,000: Net profit = -$2,500, ROI = -10.00%

When to use ROI

ROI is one of the most widely used profitability metrics in business and personal finance. Use it to compare the returns of different investments, evaluate marketing campaign performance, assess real estate purchases, or decide between competing business opportunities. Because it is expressed as a percentage, ROI makes it easy to compare investments of different sizes on equal footing.

Keep in mind that basic ROI does not account for the time period of the investment. For time-adjusted comparisons, consider annualised ROI or use it alongside other metrics like payback period.

ROI calculator FAQ

What is a good ROI?

A "good" ROI depends on the context. In stock markets, 7-10% annually is often considered solid. For business projects, anything above the cost of capital is generally positive. Compare ROI against alternative uses of the same funds.

Can ROI be negative?

Yes. A negative ROI means the investment lost money. The gain was less than the cost, resulting in a net loss.

Does ROI account for time?

Basic ROI does not factor in how long the investment was held. A 50% return over one year is very different from 50% over ten years. For time-sensitive comparisons, consider annualising the ROI.

Accuracy and use of results

CalculatorWorks aims to make calculations clear and practical. We use standard calculation methods where possible, explain assumptions in plain language, and encourage users to verify important results before relying on them.

How to interpret return on investment

Return on investment measures the gain or loss from an investment relative to the amount invested. It is a quick way to compare outcomes, but it should not be the only number used when money, risk, or time are important.

What ROI can help compare

  • Marketing campaigns and advertising spend
  • Business equipment purchases
  • Property, shares, or other investment returns
  • Training, software, or productivity investments
  • Project performance across different time periods

Example ROI scenario

If a campaign costs $2,000 and generates $2,600 in attributable profit, the gain is $600. Dividing the gain by the cost gives a 30% ROI. If another campaign has a lower ROI but scales more reliably, the better business choice may not be obvious from ROI alone.

Limitations of ROI

ROI does not automatically account for time, risk, cash flow timing, taxes, inflation, or opportunity cost. For business decisions, compare ROI with payback period, margin, contribution margin, and break-even calculations.

Most financial decisions need more than one number. After calculating this result, compare nearby scenarios with related CalculatorWorks tools so you can understand affordability, repayment pressure, savings growth and total cost from several angles.