ROI / Investment Return Calculator

What Is ROI?

Return on Investment (ROI) measures the efficiency and profitability of an investment relative to its cost. A positive ROI means you earned more than you spent; a negative ROI means a loss. The basic formula is: ROI = (Final Value − Initial Cost) / Initial Cost × 100. Because simple ROI ignores time, annualized ROI (also called CAGR — Compound Annual Growth Rate) is more useful for comparing investments of different durations. When evaluating opportunities, always weigh ROI against risk, opportunity cost, and liquidity. A high ROI on paper may not account for taxes, fees, or the possibility that capital could have earned more elsewhere.