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Advanced ROI calculator with NPV, profitability index, and investment comparison. Calculate returns for stocks, real estate, and business investments with detailed analysis.
Return on Investment (ROI) is a fundamental financial metric that measures the profitability and efficiency of an investment. It expresses the return as a percentage of the initial investment, making it easy to compare different investment opportunities regardless of their size or type.
ROI is widely used across various sectors including stock market investments, real estate, business projects, marketing campaigns, and personal finance decisions. It provides a quick snapshot of whether an investment is generating positive returns or resulting in losses.
ROI = (Net Profit / Total Investment) × 100
Where: Net Profit = Final Value - (Initial Investment + Additional Costs)
For example, if you invest $10,000 in stocks and sell them for $13,000 after paying $200 in fees, your ROI would be: ($13,000 - $10,200) / $10,200 × 100 = 27.45%
Our advanced calculator provides comprehensive investment analysis including:
ROI < 0%
Loss - Investment is not profitable
ROI: 0% - 5%
Low return - May not beat inflation
ROI: 5% - 10%
Moderate return - Acceptable for low-risk investments
ROI: 10% - 20%
Good return - Above average performance
ROI > 20%
Excellent return - High-performing investment
Calculate returns on individual stocks, mutual funds, or entire portfolios. Include brokerage fees, taxes, and dividends for accurate ROI. Compare different stocks or investment strategies to identify the best performers.
Evaluate property investments including purchase price, closing costs, renovation expenses, rental income, maintenance costs, and final sale price. Our calculator helps determine if a property is a good investment by showing both total and annualized returns.
Assess the profitability of business initiatives such as equipment purchases, technology investments, expansion projects, or new product launches. Use NPV and PI to make data-driven decisions about capital allocation.
Measure the effectiveness of marketing campaigns by comparing campaign costs against generated revenue. Track ROI across different channels (social media, email, PPC) to optimize marketing budget allocation.
Calculate ROI on educational investments like degrees, certifications, or professional training by comparing tuition costs against increased earning potential over your career.
Annualized ROI converts total returns into an average yearly percentage, making it possible to fairly compare investments with different time horizons. Formula: ((Final Value / Initial Investment)^(1/Years)) - 1 × 100
NPV accounts for the time value of money by discounting future cash flows to present value. A positive NPV indicates the investment will generate value. Use NPV when comparing investments with different cash flow patterns or time horizons.
PI measures value created per dollar invested. Calculated as (NPV + Initial Investment) / Initial Investment. A PI greater than 1 indicates a profitable investment. Higher PI values suggest better value creation.
The payback period shows how long it takes to recover your initial investment. Shorter payback periods are generally preferred as they reduce risk and improve liquidity. Formula: Initial Investment / Annual Cash Flow
ROI (Return on Investment) is a performance metric that measures the profitability of an investment. It is calculated using the formula: ROI = (Net Profit / Total Investment) × 100. Net Profit is the Final Value minus the Total Investment (Initial Investment + Additional Costs).
A good ROI depends on the investment type and risk level. Generally: 0-5% is low, 5-10% is moderate, 10-20% is good, and above 20% is excellent. Stock market average is around 10% annually, while real estate typically ranges from 8-12%.
ROI shows the total return over the entire investment period, while annualized ROI converts this into an average yearly return. Annualized ROI is calculated as: ((Final Value / Initial Investment)^(1/Years)) - 1. Use annualized ROI to compare investments with different time horizons.
For real estate ROI, include: purchase price, closing costs, renovation expenses, and ongoing maintenance as total investment. Add rental income and final sale price as returns. Formula: ROI = ((Rental Income + Sale Price) - Total Investment) / Total Investment × 100.
NPV (Net Present Value) calculates the present value of future cash flows using a discount rate. It accounts for the time value of money, which ROI doesn't. A positive NPV indicates the investment will generate value. Use NPV alongside ROI for comprehensive analysis.
Yes, ROI can be negative when the investment results in a loss. A negative ROI means the final value is less than the total investment. For example, if you invest $10,000 and end with $8,000, your ROI is -20%.
ROI measures total return as a percentage of investment, while IRR (Internal Rate of Return) is the discount rate that makes NPV equal to zero. IRR considers timing of cash flows, making it better for comparing investments with different cash flow patterns.
Yes, for accurate ROI calculation, include taxes on investment gains. Our calculator provides options to factor in tax rates, giving you a realistic picture of your actual returns after taxes.
Profitability Index (PI) is the ratio of payoff to investment, calculated as (NPV + Initial Investment) / Initial Investment. A PI greater than 1 indicates a good investment. Higher PI means better value creation per dollar invested.
Use annualized ROI to fairly compare investments with different time horizons. Our calculator automatically calculates annualized returns, allowing you to compare a 2-year investment with a 5-year investment on equal terms.
Include all costs: initial investment, transaction fees, closing costs, maintenance expenses, operating costs, taxes, and any recurring expenses. Missing costs will inflate your ROI and give misleading results.
Yes, our ROI calculator is completely free with no hidden charges or subscriptions. You get access to simple ROI calculation, advanced analysis with NPV and PI, investment comparison, and comprehensive guides at no cost.
Plan your investment strategy
Calculate internal rate of return
Calculate investment recovery time
Calculate present value of future cash flows
Calculate compound interest growth
Analyze real estate investments
Simple ROI, Advanced Analysis with NPV & PI, Investment Comparison, and Comprehensive Guide - all in one tool. Most calculators offer only basic ROI.
Calculate NPV, Profitability Index, Payback Period, and Annualized ROI - metrics that competitors don't provide. Make data-driven investment decisions.
See detailed cash flow breakdown for each year with cumulative and discounted values. Understand exactly when your investment breaks even.
Test NPV at different discount rates (5%, 8%, 10%, 12%, 15%, 20%) to understand risk impact. See break-even points for different ROI targets.
Compare unlimited investments side-by-side with automatic ranking and best investment recommendation. Make informed choices between multiple options.
Built-in comprehensive guide with real-world examples, formulas, best practices, and decision framework. Learn while you calculate.
Calculate after-tax ROI and account for inflation - features missing in most basic calculators. Get realistic, actionable results.
Get clear accept/reject guidance based on multiple metrics (ROI, NPV, PI). No guesswork - data-driven investment decisions.