What is ROI Calculator?
An Investment ROI Calculator is a financial tool that helps investors measure the profitability of investments. It calculates return on investment percentage by comparing net profit to initial cost. Essential for stock market analysis, real estate evaluation, and business planning, this calculator enables quick comparison of different investment opportunities and helps in making data-driven financial decisions.
ROI Calculation Formula
ROI = [(Final Value - Initial Investment) / Initial Investment] × 100
Annualized ROI = [(1 + ROI)1/Years - 1] × 100
How to Use
1. Enter initial investment amount
2. Input final investment value
3. Specify investment period in years
4. Click Calculate to get ROI percentage
5. Use Clear button to reset values
Advantages & Disadvantages
| Advantages | Disadvantages |
|---|---|
| Quick profitability analysis | Doesn't consider inflation |
| Easy performance comparison | Ignores time value of money |
| Simple to understand metrics | No risk factor calculation |
| Universal application | Limited to historical data |
| Free financial assessment | No tax considerations |
FAQs
1. How accurate is ROI calculator?
Our ROI calculator provides 100% accurate mathematical calculations based on your inputs. However, real-world returns may vary due to market conditions and external factors not accounted for in basic ROI formulas.
2. Can I use this for real estate?
Yes, this calculator works for real estate investments. Input property purchase price as initial investment and current market value as final value to calculate real estate ROI.