ROI Calculator – Calculate Return on Investment
What is ROI (Return on Investment)
ROI (Return on Investment) is a financial metric used to evaluate the efficiency or profitability of an investment. It measures the return gained relative to the investment cost, expressed as a percentage. A higher ROI indicates better profitability.
How to Calculate ROI
With the formula, you can calculate ROI manually
ROI = ((Net Profit – Investment Cost) / Investment Cost) × 100
Example Calculation
1. Investment Cost = ₹50,000
2. Revenue Generated = ₹80,000
3. Net Profit = ₹80,000 – ₹50,000 = ₹30,000
4. ROI Calculation:
ROI = ((Net Profit – Investment Cost) / Investment Cost) × 100
ROI = 60%
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