ROI Calculator
Quickly determine your Return on Investment (ROI) and net profit from any asset class.
Return on Investment (ROI)
Net Profit / Loss
What is Return on Investment (ROI)?
Return on Investment, or ROI, is a popular profitability metric used to evaluate how well an investment has performed. ROI is expressed as a percentage and is calculated by dividing an investment's net profit (or loss) by its initial cost or outlay.
How to Calculate ROI
ROI = (Net Profit ÷ Cost) × 100For example, if you buy $1,000 worth of Bitcoin and sell it for $1,500, your net profit is $500. Dividing $500 by the initial $1,000 gives you 0.5, which converts to a 50% ROI.
Frequently Asked Questions
Is ROI exactly the same as profit?
No. Profit is absolute money gained, while ROI measures the efficiency or yield of the investment relative to its cost.
Can ROI be negative?
Yes! If the final value of your investment is lower than the initial amount, the ROI percentage will calculate as a negative number, representing a loss.
What is annualized ROI?
Annualized ROI converts your total holding period return into an average yearly return rate. This makes it easier to compare investments held for different lengths of time.