Understanding ROI (Return on Investment)
Return on Investment (ROI) is a key metric to evaluate the profitability of investments in business, stocks, real estate, mutual funds, or other assets. This calculator helps you:
- Measure Profitability: Compare net gain vs. cost.
- Make Informed Decisions: Evaluate multiple investment options.
- Track Performance: Monitor ROI over time.
- Annualized ROI: Assess yearly returns to compare different durations.
- Financial Planning: Forecast gains and plan investments.
ROI Formula: ROI (%) = (Net Profit / Investment Cost) × 100
Annualized ROI Formula: Annualized ROI (%) = [(1 + ROI/100)^(1/Years) - 1] × 100