ROI Calculator
50%
Return on Investment
$5,000
Net Profit
22.5%
Annualized ROI
150%
Total Return
How It Works
- Enter the initial amount you invested.
- Input the final value or return you received.
- Specify the investment period in years.
- Click Calculate to see your ROI percentage.
- Review the annualized ROI for comparison with other investments.
Frequently Asked Questions
What is ROI?
ROI (Return on Investment) measures the profitability of an investment as a percentage. It's calculated by dividing net profit by the initial investment. A positive ROI means you made money; negative means you lost money.
What is a good ROI?
A good ROI depends on the investment type and risk level. Stock market investments average 7-10% annually. Real estate might target 8-12%. Business ventures often aim for 15-30% to justify the higher risk.
How is annualized ROI different?
Annualized ROI shows the average yearly return accounting for compounding. It allows fair comparison between investments held for different time periods. A 50% ROI over 5 years equals roughly 8.4% annualized.
Is this calculator free to use?
Yes, ApexSofteck Tools's ROI Calculator is completely free. Use it unlimited times to evaluate your investments without any registration or payment required.
Does ROI include all costs?
For accurate ROI, include all costs in your initial investment amount - purchase price, fees, taxes, renovation costs. Your final value should be net of any selling costs or fees.