ROI (Return on Investment) Calculator
- Profit —
- Cost / Investment —
- Revenue —
- ROI Multiple —
What is it & why use it?
Calculate Return on Investment (ROI) easily with our ROI Calculator to evaluate profitability of business and personal investments. This tool on Calci.in helps businesses and individuals measure the efficiency of their investments.
Formula (explained)
ROI (%) = (Net Profit ÷ Investment Cost) × 100
Variables: Net Profit = Returns – Cost, Investment Cost = total invested amount.
Example calculation
Investment = ₹1,00,000, Returns = ₹1,20,000 → Net Profit = ₹20,000 → ROI = (20,000 ÷ 1,00,000) × 100 = 20%.
Benefits & use cases
Measure profitability of investments
Compare business/project returns
Helps in financial planning
Related calculators on Calci.in
Break-Even Point Calculator
Profit Margin Calculator
Inventory Turnover Calculator
External references (authority sources)
Investopedia – ROI
Corporate Finance Institute – ROI
——————————————–
FAQs
Q1: What is ROI?
A: It measures the profitability of an investment compared to its cost.
Q2: What is a good ROI?
A: It depends on industry and risk, but higher ROI indicates better returns.
Q3: Can ROI be negative?
A: Yes, if the investment results in a loss.
Q4: Is ROI the same as profit margin?
A: No, ROI considers investment cost, while margin is based on sales revenue.