ROI Calculator
Enter your initial investment and the final value it returned — the calculator shows your ROI percentage and exact net gain or loss. Used for evaluating stocks, real estate, business projects, and marketing spend. ROI doesn't account for time — a 40% return over 10 years is very different from 40% in one year, so factor in the holding period when comparing options. To assess whether a business is worth funding at all, the break-even calculator shows how many units need to sell before any return is possible.
When to use this calculator
Use this to evaluate any investment with a measurable outcome — a stock position, property purchase, ad campaign, or business project. Particularly useful when comparing two options side by side to see which generated a better return relative to what was put in.
ROI
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Net Gain / Loss
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Results are instant — nothing is stored and no account is needed.
Related Calculators
How to Calculate
- Enter the initial investment — the amount you put in.
- Enter the final value — what you received back.
- ROI percentage and net gain or loss are shown instantly.
Formula
Subtract the initial investment from the final value to get the net gain. Divide by the initial investment, then multiply by 100. A positive result is a gain; negative is a loss.
Examples
Invested $2,000, returned $2,600
30% ROI — +$600 gain
Invested $500, returned $450
−10% ROI — −$50 loss
Invested $10,000, returned $15,500
55% ROI — +$5,500 gain
Use Cases
- Evaluating stock or fund investment performance
- Comparing the return on different investment options
- Assessing business project or marketing campaign profitability
- Measuring real estate investment returns
- Deciding whether to reinvest in an asset or redeploy capital
FAQ
What is ROI?
ROI (Return on Investment) measures the gain or loss on an investment relative to the amount invested. A positive ROI means you made money; a negative ROI means you lost it.
What is the ROI on a $1,000 investment that returned $1,400?
The ROI is 40%. Calculation: ($1,400 − $1,000) / $1,000 × 100 = 40%.
What is the ROI formula?
ROI = ((Final Value − Initial Investment) / Initial Investment) × 100. A positive result is a gain; a negative result is a loss.
What is a good ROI?
Context-dependent. Stock market investors typically target 7–10% annually. Real estate often sees 8–12%. Short-term business projects are measured against opportunity cost and time horizon. There is no universal threshold — compare against the next-best alternative use of the same capital.
Can ROI be negative?
Yes. If the final value is less than the initial investment, ROI is negative. Investing $500 and receiving $400 back gives an ROI of −20%.
What is the difference between ROI and profit margin?
ROI measures return relative to what you invested. Profit margin measures profit relative to revenue. ROI is better for evaluating investment decisions; profit margin is better for assessing how efficiently revenue converts to profit. A business can have a high profit margin and low ROI if the capital requirements are large.