ROI Calculator
Calculate Return on Investment.
ROI Calculator
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ROI
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The Finzorio Return on Investment (ROI) Calculator calculates simple percentage gain or loss across business projects, commercial purchases, marketing campaigns, and asset investments.
Understanding Return on Investment (ROI)
Return on Investment (ROI) evaluates the performance efficiency of an investment by comparing net profit directly against total money committed.
ROI Formula
ROI (%) = [(Net Profit / Total Investment Cost)] × 100
- Net Profit = Final Revenue / Sale Proceeds minus Total Original Cost
- Total Investment Cost = Initial capital outlay + operational expenses
Worked Example: Business Capital Outlay ROI
Project: ₹5,00,000 invested in equipment, generating ₹7,50,000 gross revenue.
• Net Profit = ₹7,50,000 - ₹5,00,000 = ₹2,50,000
• Calculated ROI = (2,50,000 / 5,00,000) × 100 = 50.0%.
Frequently Asked Questions
Simple ROI ignores the time duration of the investment. A 50% ROI over 1 year is extraordinary, but a 50% ROI over 10 years translates to less than 4.1% annual growth.