Return on investment calculator

Return on investment (ROI) calculator

The return on investment calculator shows you how much you have gained or lost on an investment. It gives you the profit/lose and the percentage of ROI. The ROI calculator can be used for all kinds of investments such as stock market assets, real estate, mutual funds. Return on investment (ROI) similar to rate of return (ROR) indicates the return on a investment. ROI is used to evaluate the efficiency of an investment. It is a versatile and widely used tool that helps in making informed decisions about where to allocate resources. If the investment results in a loss the return on investment will be a negative number.

Best ways to improve ROI

• Reduce Costs: Minimizing the initial and ongoing costs of an investment can improve ROI.
• Increase Revenue: Enhancing the income generated by an investment through effective marketing, sales strategies, and operational efficiencies can boost ROI.
• Optimize Investment Period: Balancing the duration of the investment to maximize returns while minimizing risk can enhance ROI.
• Diversify Investments: Spreading investments across different asset classes and sectors can reduce risk and improve overall ROI.
• Regular Monitoring: Continuously monitoring and adjusting investments based on performance and market conditions can help maintain and improve ROI.

How to calculate return on investment?

To calculate return on investment, you subtract the purchase price from the returned amount. Divide it by the purchase price and multiply by 100.

ROI = 100 × ((returned amount - cost of investment) / cost of investment)

Example: You want to calculate return on investment (ROI) of a stock you bought for $600 and sold for $800, the roi formula would look like this: 100 × ((800 - 600) / 600) = 33.33% ROI