ROI Calculator
Calculate the return on investment, net profit, and payback period.
Results
Total ROI0%
Annual ROI0%
Total Return$0
Net Profit$0
Payback Period0 years
How it works
ROI calculations:
- Total ROI = ((Total Return - Investment) ÷ Investment) × 100
- Annual ROI = Total ROI ÷ Years
- Payback Period = Investment ÷ Annual Return
Example
Investing $10,000 with $2,500 annual return over 5 years:
- Total Return: $12,500
- Net Profit: $2,500
- Total ROI: 25%
- Annual ROI: 5%
- Payback Period: 4 years
FAQ
- What is ROI?
- ROI (Return on Investment) measures the profitability of an investment. It's calculated as (Net Profit ÷ Investment Cost) × 100. An ROI of 50% means you earned 50% on top of your initial investment.
- What is a good ROI?
- This depends on the investment type and risk. Stock market historically returns 7-10% annually. Real estate typically 8-12%. A "good" ROI should beat inflation (2-3%) and compensate for risk taken.
- What is payback period?
- Payback period is how long it takes to recover your initial investment through returns or savings. Shorter payback periods are generally better as they reduce risk exposure.