finance Verified Precision Tool
ROI Calculator (Return on Investment)
Calculate return on investment percentage, net profit, and investment gains.
Selected: US Dollar ($)Financial Calculation Solution
ROI = -80.00%
Net Gain: $-80.00
Mathematical Formula
ROI % = ((Returned - Invested) / Invested) * 100
Overview & Explanation
Return on Investment (ROI) evaluates the efficiency and profitability of an investment.
How It Works
- Subtract initial cost from final return to find net gain.
- Divide net gain by initial cost and multiply by 100.
Practical Applications
- Marketing campaign evaluations.
- Stock portfolio performance.
- Real estate property investments.
Worked Example: $1,000 invested, $1,500 returned
Find ROI.
1
Net Profit
1500 - 1000
= $500
2
ROI Percentage
(500 / 1000) * 100
= 50%
Frequently Asked Questions
Can ROI be negative?
Yes. A negative ROI indicates an investment loss.
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