Finance calculator
ROI Calculator
Use this ROI calculator to compare the relationship between an investment's cost and its ending value. ROI is a simple percentage measure, but it does not explain risk, timing, taxes, or cash flow quality.
Formula
- Net profit = final value - investment cost
- ROI percentage = net profit / investment cost x 100
Example calculation
If an investment costs $10,000 and is later worth $12,500, net profit is $2,500 and ROI is 25%.
FAQ
Is final value the same as profit?
No. Final value is the ending amount. Profit is the final value minus the original investment cost.
Does ROI include time?
Basic ROI does not show how long the return took. A 20% ROI over one year and a 20% ROI over ten years are very different situations.
Does ROI measure risk?
No. ROI is a simple outcome ratio and does not account for uncertainty, volatility, taxes, or liquidity.
Educational disclaimer
MoneyHackWise calculators are for educational purposes only and do not provide financial, investment, tax, legal, accounting, lending, or business advice. Results are estimates based on the inputs and assumptions shown.