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BUSINESS CALCULATOR

ROI Calculator

ROI compares net profit with money committed. This version includes income and additional costs so a dividend, rental receipt, fee, or improvement cost can be represented.

Calculator

Advanced options
YOUR RESULTS
Return on investment18.18 %
Net profit or loss
200.00
Total cost basis
1,100.00
Value plus income
1,300.00

ROI compares net profit with the total cost basis entered. It does not account for how long the investment was held.

Cost compared with proceeds

  • Total cost basis1,100.00
  • Value plus income1,300.00

Understanding your result

ROI is a simple relative measure that can compare differently sized projects, provided costs and proceeds are defined consistently.

For a product or sale, the Profit Margin Calculator distinguishes profit as a share of revenue from markup on cost.

The formula

ROI = (proceeds − cost basis) ÷ cost basis × 100

Cost basis equals initial investment plus additional costs. Proceeds equal ending value plus income received. Subtract cost basis from proceeds to find net profit or loss, then divide by cost basis and multiply by 100.

Worked example

An initial 1,000 plus 100 of costs creates a 1,100 basis. Ending value 1,250 plus 50 income gives 1,300 proceeds, 200 profit, and 18.18% ROI.

How to use this calculator

  1. Enter the initial investment and its ending sale price or current value.
  2. Add income received, then open the additional options to enter costs not already included in the initial amount.
  3. Check total cost basis, value plus income, and net profit before comparing the resulting ROI with another project.

Avoid counting receipts or expenses twice

If the ending value already includes retained income, entering that income separately would overstate the return. Likewise, do not add a purchase fee again if it is already part of the initial investment. Use a consistent gross-or-net approach for the entered proceeds and costs.

A percentage does not describe the holding period

A 20% ROI earned in one year and a 20% ROI earned in ten years look identical here. For a start-and-end comparison without intermediate cash flows, CAGR can express the change annually. This ROI result also leaves any unsold ending value unrealized; a later sale can change the outcome.

Assumptions & limitations

What this calculation assumes

  • Income is received in addition to ending value.
  • Additional costs belong in the cost basis.
  • All amounts use one currency.

What to keep in mind

  • Time value and cash-flow dates are excluded.
  • Taxes and opportunity cost are not modeled.
  • Inputs must use consistent valuation methods.

Common questions

Can ROI be negative?

Yes. Negative ROI means proceeds are below total cost basis.

Should fees be included?

Include costs that are material to the comparison.

Does ROI show annual return?

No. It has no time component.