Finance
Calculator for ROI
Measure investment gain or loss compared with the amount wey you first invest.
Add to workspaceYour numbers
Result dey update as you type; no Calculate button dey. All calculation dey run inside your browser.
Return on investment
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How the result break down
| Amount |
|---|
Gain na wetin you end up with, minus wetin you put in. Cash income count only if you actually receive am.
Quick look at the result
Bars dey compare initial investment with final value plus cash income. If the final-value-plus-income bar longer pass the initial-investment bar, ROI positive.
ROI for different ending values
| If final value be | ROI |
|---|
Cash income stay at the value above; na only final value dey change from row to row.
Formula
ROI = (ending value + cash income − initial investment) ÷ initial investment × 100%. Gain = ending value + cash income − initial investment.
Example wey show the calculation
Initial value $10,000, final value $12,500, cash income $500: gain = $12,500 + $500 − $10,000 = $3,000, and ROI = $3,000 ÷ $10,000 × 100% = 30.00%.
Where e fit work and limits
ROI no consider how long you invest the money, so e no fit compare investments wey you hold for different periods fairly — use annualized return for that. Taxes, fees and inflation no dey inside unless the values wey you enter don already reflect dem.
Questions wey people dey ask often
How the ROI calculator dey work?
ROI = (ending value + cash income − initial investment) ÷ initial investment × 100%. E dey answer one question: for every dollar wey you invest, how much come back above your original money?
Why my ROI negative?
Negative ROI mean final value plus cash income no reach the initial investment — you get back less than wetin you put in. The loss size na the gain figure wey dey show as negative amount.
I fit use only ROI compare two investments?
Na only if you hold dem for the same time. A 30% return for one year better pass 30% for five years. For different holding periods, compare annualized returns instead.
I suppose include income?
Yes, if you receive am — dividends, interest or rent wey dem pay during the holding period na part of return. No count income twice if e don already reflect for final value.
ROI include tax or fees?
No, unless the values wey you enter don already reflect dem. Brokerage fees, taxes on gains and inflation all dey reduce real return.
Higher ROI always better?
No be necessarily so. ROI no tell you about risk, volatility or how long your money dey tied down. High ROI for risky investment wey hard to sell no directly compare with lower ROI for safe investment.
Other tools wey relate to dis
- Calculator for compound interest — growth over time when you reinvest returns
- Calculator for yearly compounded return — yearly rate wey give the total return
- Calculator for Simple Interest — interest wey no dey compound
Results na estimates; dem no replace advice from qualified professional.