ROI's strengths and blind spots
ROI is universal and intuitive, but it ignores time and risk. A 25% return over five years is very different from 25% in six months — hence the annualized figure when you supply duration.
ROI Calculator
Return on investment percentage and net profit from cost and final value — with annualized option.
Enter your details and press Calculate to see results.
Formula
ROI = (final − cost) ÷ cost × 100%
Example
Buy at $10,000, sell at $12,500 → ROI = 25%. Held 2 years → ≈ 11.8% annualized.
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Frequently asked questions
Can ROI be negative?
Yes — losses produce negative ROI, e.g., −20% means recovering only 80 cents per dollar.
Should I include fees?
Absolutely — fold every cost into 'amount invested' for honest numbers.
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