Return on Investment Calculator
Enter investment cost, value received to find roi. ROI = (proceeds−cost)/cost.
How the result changes
Only investment cost changes; all other inputs stay at your current values. The line illustrates the formula across the shown range. This is not a forecast of real-world outcomes.
About this calculation
Return on Investment: find roi from investment cost, value received. Return measures compare investment outcomes with the initial amount; CAGR additionally accounts for the number of years.
Formula
ROI = (proceeds−cost)/cost
Worked example
With Investment cost: 1000 currency units, Value received: 1200 currency units, roi is 20 %.
Calculation method
The rule is ROI = (proceeds−cost)/cost.
ROI divides net gain by the starting cost. It does not adjust for how long the investment was held.
For this return on investment example, changing investment cost from 1000 currency units to 1001 currency units while keeping the other inputs fixed changes rOI from 20 % to 19.88 %.
Reading rOI
ROI is gain relative to cost, while CAGR is an annualized equivalent growth rate. The two are not interchangeable for different holding periods. In the worked values on this page, investment cost 1000 currency units, value received 1200 currency units produce roi 20 %.
Practical use
Use the results to compare simplified investment scenarios on the basis stated by each formula. The specific task here is to find roi from investment cost, value received.
Limits and common mistakes
Fees, taxes, interim cash flows, and risk are not represented unless included in the amounts you enter. Verify investment cost in currency units before interpreting rOI; a value measured on another basis would answer a different question.
Read the example and units
The worked values on this page use investment cost 1000 currency units and value received 1200 currency units. With those exact entries, the calculator reports roi 20 %. The same example also reports net gain 200.00 currency units; those figures describe different aspects of this one set of inputs rather than extra values to add to the primary answer. Keep all money amounts in one currency and check which amount is the base of a percentage. The displayed rule uses only the rate, amount, term, or count you supply; it does not import a market price, account balance, receipt rule, or contract term.
Compare one changed input
For a second scenario, change only investment cost 1000 currency units to investment cost 1100 currency units and leave the other example entries alone. The result for roi changes from 20 % to 9.09 %. Comparing one changed input at a time shows exactly which assumption drove the difference in this calculation. This comparison isolates the arithmetic effect of one assumption. Actual fees, contract terms, taxes, behavior, or market outcomes may change a real result, so compare several plausible inputs rather than relying on one precise-looking number.
How to interpret this kind of result
Return on investment compares gain with the starting cost, while compound annual growth rate translates a start and end value into an equivalent annual growth path. They answer different questions, especially when holding periods differ. Record whether the ending amount includes dividends or other cash received so that the numerator matches your intended comparison. For this return on investment calculation, investment cost in currency units and value received in currency units determine roi; the displayed roi 20 % belongs to that exact combination rather than to a different rate, term, or measurement basis.
Scope and practical checks
These formulas do not model the timing of interim cash flows, fees, taxes, or risk. Two investments can show the same simple return while exposing the investor to very different paths and losses. Use the calculation as a first arithmetic comparison and examine statements or records for a complete performance measure. Check the investment cost in currency units and value received in currency units entries against the quantities in your own situation before using roi; this page cannot infer a field or condition that you did not enter.
Common questions
What does this return on investment result include?
The roi comes from investment cost in currency units and value received in currency units using the displayed rule ROI = (proceeds−cost)/cost. It does not automatically include a condition absent from the listed inputs. Check the applicable account, transaction, or contract terms before using it for a financial decision.
Sources and references
Inputs
- Investment cost (currency units)
- Value received (currency units)