Return on Investment (ROI) is a financial metric used to evaluate the profitability or efficiency of an investment. It measures the return or gain on an investment relative to the initial cost or outlay.
Page written by Ian Hawkins. Last reviewed on May 15, 2025. Next review due April 6, 2027.
This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.
To calculate Return on Investment (ROI), you’ll need the following information:
Initial Investment (Cost): This is the amount of money you initially invest in a project, venture, or asset.
Final Value (or Earnings): This is the total value or earnings generated from the investment.
The formula for ROI is:
ROI = Net income / Cost of investment x 100
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