Free ROI Calculator: Measure Your Investment’s Profitability Instantly
You use the free ROI Calculator by typing your earnings and initial outlay, pressing “Calculate,” and instantly seeing the profit percentage. ROI equals rac{Earnings – Initial Investment}{Initial Investment}. U.S. stocks returned roughly 7 % annually after inflation between 1928-2022 (Damodaran, 2023).
Return on Investment (ROI) Calculator
ROI Result
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How to use the tool
Fill “Earnings (USD)” – e.g., 12 500 or 1 350.
Fill “Initial Investment (USD)” – e.g., 10 000 or 1 200.
Hit “Calculate ROI”. The result appears below the form and updates whenever you change a value.
Interpret the percentage. A positive figure shows profit; a negative figure shows loss.
Formula the calculator uses
Return on Investment:
$$
ROI = rac{Earnings – Initial\;Investment}{Initial\;Investment}
$$
Average real S&P 500 ROI: ≈ 7 %/yr 1928-2022 (Damodaran, 2023).
Standard formula: (Earnings – Cost) ÷ Cost (SEC Investor.gov, 2024).
Negative ROI: signals loss on capital (SEC Investor.gov, 2024).
Data persists: “localStorage saves key-value pairs across sessions” (MDN Web Docs, 2024).
What is ROI?
ROI is a ratio that shows profit or loss per dollar invested using the formula above (SEC Investor.gov, 2024).
How does the calculator work?
JavaScript reads your two inputs, applies the ROI formula, rounds to two decimals, and prints the percentage; inputs are cached with localStorage so they re-appear on your next visit (MDN Web Docs, 2024).
What counts as a “good” ROI?
A return exceeding alternatives is good; beating the long-run 7 % real return of U.S. equities meets that bar for many investors (Damodaran, 2023).
Can ROI be negative?
Yes. Costs higher than returns yield a negative ratio, flagging capital loss (SEC Investor.gov, 2024).
Does ROI include time?
No. ROI is timeless; use annualized ROI or IRR when timing matters (Investopedia, 2024).
How do taxes affect ROI?
Taxes reduce net earnings, lowering ROI. Estimate after-tax profit for an accurate figure (IRS Pub. 550, 2023).
How can you improve ROI?
Cut costs, raise revenue, or both—“every dollar of cost saved drops straight to the bottom line” (McKinsey Report, 2022).
Is ROI enough for decisions?
Combine ROI with risk, liquidity, and time horizon analyses for sound choices (CFA Institute, 2023).
Important Disclaimer
The calculations, results, and content provided by our tools are not guaranteed to be accurate, complete, or reliable. Users are responsible for verifying and interpreting the results. Our content and tools may contain errors, biases, or inconsistencies. We reserve the right to save inputs and outputs from our tools for the purposes of error debugging, bias identification, and performance improvement. External companies providing AI models used in our tools may also save and process data in accordance with their own policies. By using our tools, you consent to this data collection and processing. We reserve the right to limit the usage of our tools based on current usability factors. By using our tools, you acknowledge that you have read, understood, and agreed to this disclaimer. You accept the inherent risks and limitations associated with the use of our tools and services.
