ROI (Return on Investment) measures how profitable an investment is. Formula: ROI = (Net Profit / Cost of Investment) x 100. Example: you invest 50,000 rupees and earn 65,000 back — net profit = 15,000. ROI = (15,000 / 50,000) x 100 = 30%. A positive ROI means you made money. A negative ROI means you lost money.
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📈 ROI Calculator
Calculate your Return on Investment instantly. Find out if your investment, business, or project was profitable and by how much. Simple, clear, and instant!
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🦉Owl's Explanation
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🤔 How Does This Work?
ROI is calculated using the standard formula used by investors and businesses worldwide:
ROI (%) = ((Final Value - Initial Investment) / Initial Investment) x 100
Net Profit = Final Value minus Initial Investment
ROI % = Net Profit divided by Initial Investment, multiplied by 100
Annual ROI = Total ROI divided by number of years (if time period is entered)
A positive ROI means your investment made money. A negative ROI means you lost money. Use ROI to compare different investment options and choose the most profitable one.
✅ Trusted Tool
The 365tool.net ROI Calculator uses the standard formula used by investors, accountants, and business analysts worldwide. Free for entrepreneurs, investors, students, and business owners. Results are for guidance — consult a financial advisor for major investment decisions.
❓ FAQ
What is a good ROI?▼
A good ROI depends on the type of investment and the time period. For stocks, 7-10% annual ROI is considered good. For a business, 15-25%+ ROI is typical for a healthy company. Real estate often returns 8-12% annually. Anything above your cost of borrowing money is positive.
What is the difference between ROI and profit?▼
Profit is the actual money you made (return minus investment). ROI is the profit expressed as a percentage of your investment. Example: invest 100,000, earn back 120,000. Profit = 20,000. ROI = 20%. ROI lets you compare different investments fairly.
Can ROI be negative?▼
Yes! A negative ROI means you lost money. If you invested 100,000 and only got 80,000 back, your ROI is -20%. A negative ROI tells you the investment was not profitable. It is important to know this before making future investment decisions.
How do I calculate annual ROI?▼
To find annual ROI, divide the total ROI by the number of years. Example: 30% total ROI over 3 years = 10% annual ROI. Our calculator shows both total ROI and annualised ROI when you enter the time period.
What is the difference between ROI and profit margin?▼
ROI measures return relative to your investment cost. Profit margin measures profit relative to revenue (sales). A business can have a high profit margin but low ROI if it requires very large capital investment to generate sales.