Finance

ROI Calculator

Calculate net profit and return after the initial investment and additional costs.

Enter your values

Your result

Net return on investment

27.27%

Total investment and costs
11,000
Total proceeds
14,000
Net profit or loss
3,000

An estimate based on your inputs. Review the assumptions and method below.

How does this calculator work?

Add everything received from the investment, including sale proceeds and distributions, then compare it with everything paid. The return is measured against the initial investment plus additional costs.

The formula

Total cost = initial investment + additional costs. ROI = (total proceeds − total cost) ÷ total cost × 100.

What should you know?

  • Enter full proceeds, not profit alone, and do not deduct costs twice.
  • The return covers the entire period and is not annualized. It ignores cash-flow timing and inflation. Use CAGR for start-to-end growth without intermediate cash flows.
  • A negative return means a loss. A 0% return means the total cost was recovered.

Common questions

Should I add distributions to the selling price?

Yes. Include sale proceeds and related distributions or income in total proceeds. Enter additional expenses once in their separate field.

Why does this differ from profit divided by initial investment?

This calculator includes additional costs in the denominator because they form part of the actual amount invested. State this definition when comparing returns.

Sources and verification

How do we choose formulas and check results?

Sources explain the method or its limits; they do not imply that the linked organizations endorse this calculator.