Enter the total amount of money invested and the total return into the ROI calculator. The calculator will display the total ROI and % ROI.
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ROI Formula
The following formula is used to calculate a return on investment.
ROI = FV / IV *100
- Where FV is the final value
- IV is the initial value
This formula yields the total percent gain in investment with respect to the initial investment.
ROI Definition
ROI is short for return on investment. Usually, it’s displayed as a percentage of the total return with respect to the initial value of that investment. In other words, how much the investment has grown over time.
How to calculate a ROI?
How to calculate a ROI
- Determine the initial invesment
Calculate or determine the initial amount of money being invested.
- Determine the final value of the investment
Through either a growth calculator or similar formula, determine the total value of the investment after a given time.
- Calculate ROI
Plug the values from step 1 & 2 into the formula to calculate the return on investment.
FAQ
ROI stands for return on investment. It’s a term used in finance to describe how much value is gained from an investment. In other words, how much “return” an investment yields over a given period of time.
Return on investments is a direct result of the securities or assets purchased with the money. The only way to increase return is to invest in things that yield higher return rates, however, these are often riskier investments that could return losses.
