ROI Calculator
Calculate return on investment as a percentage and net profit, including annualised (CAGR).
Tip: ROI = (return − investment) ÷ investment × 100. Above 0% = profit; below 0% = loss.
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About this digital tool
The ROI (return on investment) calculator shows how much profit or loss you have made relative to the amount invested. Enter the initial investment and the final value, and get the net profit and ROI as a percentage. Formula: ROI = (return − investment) ÷ investment × 100. If you also give the duration, the tool calculates the annualised return (CAGR) too.
It is used to compare different investments: real estate, a business, advertising or shares. Simple ROI does not account for time, so two investments with the same ROI but different durations are not equal. The result is an estimate and does not include taxes, fees or inflation.
How to use
- Enter the amount invested at the start.
- Enter the final value or the return received.
- Optionally set the duration in years to see the annual return too.
- Read the net profit and ROI as a percentage.
Frequently asked questions
What is considered a good ROI?
It depends on the type of investment. Stock market: 7–10% a year. Property: 8–12%. Business: 15–30%. Always compare with inflation.
How is ROI calculated?
Subtract the investment from the return, divide by the investment and multiply by 100. If you invest 500,000 lek and get back 650,000 lek, ROI is 30%.
Why does ROI need time?
Because 30% in one year is far better than 30% in five years. That is why the annualised return (CAGR) is used, which spreads the growth across the years.
What is the difference between ROI and IRR?
ROI is a simple total percentage, while IRR takes into account when the cash flows arrive. IRR is better suited to projects with payments in different years.