Return on Investment (ROI) Calculator

What is ROI?

ROI (Return on Investment) means the return you get on your investment. It tells you how much profit you made compared to the money you put in.

You can think of it like a kind of scorecard:

• Higher ROI = the investment is giving good profit.
• Low or Negative ROI = either very little gain or a loss.

ROI is mostly shown in percentage (%). This makes it easier to compare different investment options (like stocks, mutual funds, business projects) so that you can choose the right one according to your goals and risk.

The formula for ROI is very simple:

ROI can be calculated using the formula:

$$ ROI = \frac{Net\ Profit}{Cost\ of\ Investment} \times 100 $$

Straightforward: ROI tells you how efficiently your money is being used. Always check this before investing and keep hidden costs in mind, otherwise the actual return can be lower.