⚡ Quick Answer

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!

✏️ Enter Your Values

💰 Initial Investment (Cost) 📈 Final Value (Return) 📅 Investment Period (optional)

✨ Your Result

🦉Owl's Explanation

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Fill in the values above and click Calculate ✨

🤔 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.

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📈 How to Calculate ROI Properly (Avoiding Common Mistakes)

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❓ 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.

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