Calculation GuideUpdated 2026-08-03
How to Calculate ROI: Return on Investment Formula & Guide
Learn how to measure investment performance and compare profitability ratios across financial assets.
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Calculate return on investment percentage.
The Basic ROI Formula
Return on Investment (ROI) expresses net gain relative to initial cost:
ROI (%) = ((Final Value of Investment - Initial Cost) / Initial Cost) × 100
Frequently Asked Questions
What is a good ROI percentage?
In equity stock markets, an annual return of 7% to 10% after inflation is historically considered solid.
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