ROI Calculator
Evaluate the efficiency of your capital. This calculator measures total return on investment (ROI) and net financial yield across business assets, marketing initiatives, and trading portfolios.
Upfront capital spent or asset acquisition price
Gross proceeds returned or current market valuation
Ongoing fees, commissions, or operational expenses
Percentage gain or loss relative to total invested
How to Use This Calculator
- Enter the original amount of capital invested to launch or acquire the asset.
- Enter the total revenue generated or final liquidation value of the investment.
- Add any transactional fees, legal costs, or ongoing carrying expenditures.
- Review your net dollar profit and standardized percentage return.
Formula & Calculation Methodology
Expresses net economic gain as a percentage proportion of total capital risked and expended.
Worked Example
$20,000 invested, $1,000 in fees, sold for $28,000
Frequently Asked Questions
What is the difference between ROI and Annualized ROI?↓
Standard ROI reflects total cumulative return regardless of timeframe. Annualized ROI incorporates the holding duration (Compound Annual Growth Rate, CAGR), allowing fair comparison between a 20% 1-year gain and a 20% 5-year gain.
Can ROI be negative?↓
Yes. When total proceeds are less than total expended capital, the investment yields a negative ROI and an absolute financial loss.
Does this calculator incorporate income taxes on capital gains?↓
This calculation reflects gross pre-tax returns. Long-term vs short-term capital gains taxes depend on your jurisdiction and holding period.
What is considered a "good" benchmark ROI?↓
A historical benchmark for broad equity markets is 7% to 10% annualized. For private venture projects or real estate renovations, investors typically seek 15% to 25%+ to compensate for illiquidity.
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Source Citation & Disclaimer
Informational tool only; not licensed tax, legal, or financial advice.