What is Return on Investment (ROI)?

ROI is a financial metric used to evaluate the efficiency or profitability of an investment. It measures the amount of return relative to the investment's cost.

So how do you calculate ROI?

The formula is: ROI = [(Current Value - Cost) / Cost] × 100. This gives you the percentage return on your initial investment.

What does Annualized ROI mean?

Annualized ROI shows the average yearly return rate, which is helpful for comparing investments held for different lengths of time.

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ROI Forecaster

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ROI Inputs

Amount Invested

Amount Returned

Investment Period (Years)

Used for annualized calculation.

Total ROI

50.00%

Net Profit/Loss

$500.00

Annualized ROI

50.00%

Yield Analysis

Return on Investment (ROI) is the ultimate metric for evaluating the profitability of any expenditure. Whether it's a marketing campaign, equipment purchase, or financial asset, ROI provides a universal language for capital performance.

The Ratio

ROI = [(Value - Cost) / Cost] × 100

Standard Mathematical Protocol

Time weights

Simple ROI

The absolute percentage gain or loss. Ideal for quick short-term trades or single-period tactical analysis.

Annualized Yield

The average yearly return. Essential for comparing a multi-year project against a high-velocity trade.