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An ROI (Return on Investment) calculator measures the profitability of an investment by comparing the gain or loss to the original cost, expressed as a percentage. It's used to evaluate anything from a stock purchase to a marketing campaign's return.
How to Use This Tool
- Enter your initial investment amount.
- Enter the final value or return from that investment.
- The tool instantly calculates your ROI as a percentage, along with the net profit or loss.
- Use the result to compare this investment's performance against alternatives.
Why Use This Tool?
The calculator applies the standard ROI formula — (gain minus cost) divided by cost — instantly, so you can compare the return on different investments or campaigns side by side without manually working out the percentage each time.
Frequently Asked Questions
1. How is ROI calculated?
ROI is calculated as (final value minus initial investment) divided by the initial investment, then expressed as a percentage.
2. What is a good ROI percentage?
It depends heavily on context — stock market investments average roughly 7–10% annually over the long term, while marketing or business ROI expectations vary widely by industry.
3. Does this calculator account for time period?
This calculator shows the overall ROI between two values; to compare investments over different time periods, you may want to annualize the result separately.
4. Can I use this for business or marketing ROI?
Yes, this calculator works for any investment-versus-return scenario, including marketing campaign spend versus revenue generated.
5. What's the difference between ROI and profit margin?
ROI measures return relative to the amount invested, while profit margin measures profit relative to revenue — they answer different questions and aren't interchangeable.
6. Is this ROI calculator free?
Yes, it's completely free to use with no limits.
7. Can ROI be negative?
Yes, a negative ROI means the investment lost value — the final value was lower than the initial investment.
8. Is my financial data stored when I use this calculator?
No, the calculation happens locally in your browser and no figures you enter are saved or sent anywhere.