What is ROI (Return on Investment)?

Return on Investment (ROI) is a financial metric used to evaluate the profitability or efficiency of an investment. It measures the amount of return on an investment relative to the investment’s cost. In simple terms, ROI helps you understand how well your investment is performing.

ROI Calculation Formula:

The formula for calculating ROI is:

ROI = [(Return from Investment - Cost of Investment) / Cost of Investment] * 100

How to Use This ROI Calculator:

1. Enter the initial cost of your investment.
2. Enter the total return you received from the investment.
3. Click "Calculate" to see the ROI percentage.

Why is ROI Important?

• Measures Profitability: ROI helps you understand if your investment is generating a profit.
• Compares Investments: It allows you to compare the profitability of different investments.
• Informs Decision-Making: ROI helps you make informed decisions about where to invest your money.

Disclaimer:

This ROI calculator is for informational purposes only and provides an estimate. Actual returns may vary. Consult with a financial advisor for comprehensive investment analysis.