ROI Calculator
Make informed financial decisions. Calculate the percentage return on your initial investment efficiently.
The Math Behind It
ROI = [(Ending Value - Initial Value) / Initial Value] * 100%ROI effectively measures the simple ratio of your net profit to your total initial investment cost, yielding a universally understood percentage.
Example
Spending $5,000 on a marketing campaign that yields $6,500 in new sales creates a net profit of $1,500, delivering a solid 30% ROI.
Frequently Asked Questions
It varies vastly by industry and risk tolerance. Typically, an annualized ROI of 7% to 10% is considered good for standard market investments.