Investment ROI Calculator
What is Return on Investment (ROI)?
Return on Investment (ROI) is a performance measure used to evaluate the profitability of an investment. It shows how much return you have earned compared to your initial investment.
ROI is widely used by investors and businesses to compare different investment opportunities and make better financial decisions.
FORMULA
ROI=Final Value−Initial InvestmentInitial Investment×100ROI = \frac{Final\ Value – Initial\ Investment}{Initial\ Investment} \times 100ROI=Initial InvestmentFinal Value−Initial Investment×100
Example
If you invest $1,000 and your investment grows to $1,500, your ROI would be calculated as a percentage. This helps you understand how profitable your investment is.
Frequently Asked Questions
Q1: What is a good ROI?
A good ROI depends on the type of investment, but generally, a higher ROI is better.
Q2: Can ROI be negative?
Yes, if your investment loses value, the ROI will be negative.
Q3: Is ROI enough to evaluate an investment?
ROI is useful, but other factors like risk and time should also be considered.
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