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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