Investment Calculator
ROI Calculator
Calculate your return on investment, investment profit, total return, ROI percentage, and annualized return. Use the calculator to evaluate business investments, projects, assets, campaigns, and other financial decisions.
Investment Details
Enter the amount invested and the value received from the investment.
Total amount invested at the beginning of the investment.
Fees, transaction costs, setup costs, or other costs directly associated with the investment.
Amount received or estimated value of the investment at the end of the period.
Dividends, rental income, distributions, or other income received during the investment period.
The time between the investment and the final value.
ROI
0%
Investment profit
KSh 0
Total return
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Annualized ROI
0%
Investment Summary
Initial investment
KSh 0
Additional costs
KSh 0
Total amount invested
KSh 0
Final investment value
KSh 0
Other income
KSh 0
Total proceeds
KSh 0
ROI Breakdown
See how the investment amount compares with the proceeds and profit.
| Measure | Amount | Percentage |
|---|---|---|
| Total investment | KSh 0 | 100% |
| Profit | KSh 0 | 0% |
| Total proceeds | KSh 0 | 0% |
Investment Return
Visual comparison between the amount invested and total proceeds.
ROI Formula
Return on investment compares the gain or loss from an investment with the total amount invested.
ROI = (Profit ÷ Total Investment) × 100
In this calculator, total proceeds can include the final investment value and other income received during the investment period. Investment costs are included in the total amount invested.
What Is Return on Investment?
Return on investment, commonly called ROI, is a measure used to evaluate the financial result of an investment relative to the amount invested. It can help investors and businesses compare different opportunities and assess whether a project, asset, campaign, or business activity generated an attractive return.
A positive ROI means that the proceeds from the investment exceed the amount included in the investment cost. A negative ROI means that the investment generated a loss based on the figures entered.
ROI vs Annualized ROI
Standard ROI measures the total return over the entire investment period. It does not by itself indicate how quickly that return was generated.
Annualized ROI adjusts the return for the length of the investment period. This can make it easier to compare investments held for different amounts of time.
Why ROI Matters for Businesses
Businesses can use ROI analysis when evaluating marketing campaigns, technology investments, equipment purchases, expansion projects, employee initiatives, acquisitions, and other decisions requiring capital or resources.
ROI should not normally be considered in isolation. Businesses may also evaluate risk, cash flow, timing, financing costs, taxes, opportunity cost, strategic value, and other factors before making an investment decision.
ROI Calculator FAQs
How do I calculate ROI?
ROI is generally calculated by subtracting the total investment cost from the proceeds to determine profit, then dividing the profit by the total investment cost and multiplying by 100.
What does a 20% ROI mean?
A 20% ROI means that the profit represented by the calculation equals 20% of the amount invested. The investment period must also be considered when comparing this return with other opportunities.
What is the difference between ROI and profit?
Profit is an amount of money, while ROI expresses the profit relative to the amount invested as a percentage.
Can ROI be negative?
Yes. If total proceeds are lower than the total amount invested, the resulting ROI is negative and indicates a loss based on the calculation.
Why include additional investment costs?
Fees, setup expenses, transaction costs, and other investment costs can reduce the actual return. Including them can provide a more realistic estimate of ROI.
What is annualized ROI?
Annualized ROI expresses the investment's equivalent yearly growth rate based on the total return and investment duration. It can be useful when comparing investments with different holding periods.
Is ROI enough to make an investment decision?
No. ROI is one useful measure, but investment decisions can also require analysis of risk, cash flow, liquidity, taxes, financing, timing, market conditions, and strategic objectives.
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