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ROI Calculator

Calculate return on investment as net profit divided by total cost, expressed as a percentage.

calculatorPublished 2026/05/25Last verified 2026/06/07

ROI Calculator

Return on investment = net profit ÷ total cost × 100.

Return on investment

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What is ROI?

Return on investment (ROI) measures the profitability of an investment as a percentage of its cost. It is a simple, universal way to compare deals of different sizes.

The formula

This calculator uses the net-profit form:

ROI = Net profit / Total cost × 100

Net profit is the gain from the investment after subtracting all costs. Total cost is everything you put in. For real estate, net profit might combine cash flow and appreciation, while total cost includes purchase price, closing costs, and improvements.

How to use it

  1. Enter the net profit.
  2. Enter the total cost.

For example, $50,000 of net profit on $200,000 of cost is a 25.00% ROI.

A caveat on time

ROI as shown here is not annualized — a 25% return over one year is very different from 25% over ten years. For time-sensitive comparisons, divide by the holding period or use an annualized metric.

FAQs

Which ROI formula does this use?
It uses net profit ÷ total cost × 100. Enter the profit already net of costs; the calculator divides it by the total cost you invested.
Is this ROI annualized?
No. It is a simple total-return figure. To compare investments held for different lengths of time, annualize the result by accounting for the holding period.
How is ROI different from cash-on-cash return?
Cash-on-cash return looks only at annual cash flow relative to cash invested. ROI here is broader — it can include appreciation and equity gain in net profit, not just cash flow.
Can ROI be negative?
Yes. If net profit is negative (a loss), ROI is negative, indicating the investment cost more than it returned.

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