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This return on investment calculator will show you how to calculate ROI using four different approaches.
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Return on investment (ROI) is a financial ratio used to calculate the benefit an investor will receive in relation to their investment cost – most commonly measured as net income divided by the original cost of the investment. The higher the ratio, the greater the benefit earned.
There are several versions of the ROI formula. The two most commonly used are shown below:
ROI = Net Income / Cost of Investment or ROI = Investment Gain / Investment Base
This ROI calculator will demonstrate four ways to obtain the ROI value: net income method, capital gain method, total return method, and annualized ROI.
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Below is a break down of subject weightings in the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.
A well rounded financial analyst possesses all of the above skills!
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CFI is the global institution behind the financial modeling and valuation analyst FMVA® Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path.
In order to become a great financial analyst, here are some more questions and answers for you to discover:
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