ROI Calculator
Calculate your Return on Investment with detailed insights
What is ROI?
Return on Investment (ROI) measures the returns generated from your investments, assisting you in selecting the best option among various investment alternatives. It allows you to evaluate investments based on your financial goals and risk tolerance. Additionally, you can assess the costs associated with your investments and identify any hidden charges that may diminish your returns.
ROI is typically expressed as a percentage and serves as a financial ratio that helps you determine the benefit of your investment relative to its costs. You can calculate ROI using the formula:
ROI = Net Profit / Cost of the investment * 100
For investors, ROI indicates the profitability of their investments. For instance, when investing in mutual funds, ROI reflects the gains from your mutual fund schemes.
ROI can be either positive or negative; a negative ROI indicates a loss on the investment. Therefore, it’s essential to choose investments that have the potential to yield the highest returns over time.
What is an ROI Calculator?
An ROI calculator is a tool that helps you assess the profitability of your investments. You can use this calculator to evaluate returns across different investment periods. The ROI calculator features a formula box where you enter the initial amount invested, the amount returned, and the investment duration. It provides you with the total gain on your investment, along with the absolute return on investment, annualized return on investment, and the compounded annual growth rate (CAGR).