Business Finance

ROI Calculator

Calculate net gain and return on investment percentage from investment and return amount.

Calculator

Enter investment and return

$
$
Result

Return on investment

Net gain $1,500.00
ROI 30%

Formula

Net Gain = Return - Investment ROI = Net Gain / Investment * 100

Example

If you invest $5,000 and receive $6,500 back, net gain is $1,500. ROI is 30%.

Read how to calculate ROI for a step-by-step explanation.

Common mistakes

  • Comparing ROI numbers without considering time period.
  • Leaving out hidden costs, fees, or labor time.
  • Using ROI alone when risk and cash flow also matter.

Use the Break Even Calculator to estimate how much you need to sell before an investment pays off.

FAQ

What is ROI?

ROI means return on investment. It compares net gain to the original investment amount.

How do you calculate ROI?

Subtract investment from return to get net gain, then divide net gain by investment and multiply by 100.

Can ROI be negative?

Yes. ROI is negative when the return amount is lower than the investment amount.

Does ROI include time?

This calculator does not annualize ROI or adjust for time. It only compares return amount to investment amount.

Disclaimer

This calculator is for general business planning and educational use. It does not replace investment, accounting, tax, or financial advice.