# ROI (Return on Investment) Calculator

You can use our simple ROI calculator to quickly and easily estimate how much money an investment lost or gained during a defined period. The calculator also provides details of the annualized ROI in percentage terms.

Return on investment (ROI) is presented in percentage terms and is a measurement of the loss or gain that is generated from an investment as a ratio of the total amount that was initially invested.

You can use the ROI calculator to compute the ROI in five simple steps:

1. Select the currency from the drop-down list (that's optional)
2. Enter the principal amount of the investment
3. Enter the date on which the investment was first made
4. Provide details of the amount that was returned on the investment
5. Click the "Calculate" button to find out the ROI and annualized ROI.

The results generated by the ROI calculator include both the ROI and the annualized ROI. You can use these figures to compare and contrast the returns that were yielded on different investments.

Return on Investment Calculator

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## Return on Investment Formula & Example

The basic formula for calculating ROI is as follows:

• ROI (%) = [ (GI - CI) / CI ] × 100
• Where,
• GI is the gain from investment, CI is the cost of investment.

Example:  If you bought \$10,000 worth of the stock on February 3rd 2016 and sold it for \$12,000 on September 20th 2017, you would have a gain of \$2,000 which is 20%.

ROI (%) = [ (\$12,000 - \$10,000) / \$10,000 ] × 100

ROI (%) = 0.2 × 100 = 20%

You may also be interested in our ROIC (Return on Invested Capital) Calculator or T-Bill Calculator