Return on Investment (ROI) is a fundamental performance measure used to evaluate the efficiency or profitability of an investment. It measures the amount of return on a particular investment, relative to the investment's cost.
How to Use This Tool
Initial Investment: Enter the total amount you invested.
Final Value of Investment: Enter the total value of your investment at the end of the period (including the principal).
Interpreting the Result
The result is shown as a percentage. A positive ROI means the investment was profitable, while a negative ROI means it resulted in a loss.
ROI is a simple, universal metric. For investments over multiple periods with complex cash flows, consider using our IRR Calculator for a more time-sensitive analysis.