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How to Calculate ROI

Calculate return on investment, annualized ROI, and net profit for any investment.

The Formula

ROI = (netProfit / cost) * 100

The roi formula uses the mathematical relationship: ROI = (netProfit / cost) * 100. Each variable in the formula represents a measurable quantity that affects the final result.

Step-by-Step Method

  1. 1Identify all input values needed for the roi calculation.
  2. 2Substitute your known values into the formula: ROI = (netProfit / cost) * 100.
  3. 3Perform the arithmetic operations in the correct order (PEMDAS/BODMAS).
  4. 4Check that your result has the correct units and is within a reasonable range.
  5. 5Verify using the interactive ROI Calculator to confirm your answer.

Related Topics

ROIreturn on investmentprofitinvestment

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