ROI Calculator

Description

Return of Investment is a ratio between the net gain and net cost of an investment. This financial metric is commonly used to measure the probability of earning a return from an investment. Since the main advantage of this metric is simplicity. ROI is usable in evaluating stocks, business ventures, to real estate. Moreover, the result of this metric is in percentage, which helps interpretation effortlessly. 


Return On Investment (ROI) Formula: (Gain from Investment – Cost of Investment)/ Cost of Investment


This formula does not take any risks associated with the investment into consideration. Therefore, it can be assumed that it is one of the biggest limitations of Return on Investment. 

Let’s suppose that an investor wants to buy the property in Chicago for $400,000. After three years, he will sell the property for $750,000. Taking the above formula into consideration, we will calculate the return on his investment on this property.

ROI= ($750,000 – $400,000) / ($400,000) = 87.5%

The same formula is also useable to calculate the cost of investment if we know the ROI. For instance, if the investor wanted an ROI of 50%, and he knew his initial cost of investment, he could take out the gain from the initial investment to realize his desired return on investment.  

ROI-Calculator

Annualised Return On Investment

Annualized return on Investment varies from basic Return on Investment as it takes into account the Investment Time/ Holding Period. Furthermore, if we compare the results of these two calculations, the annualized ROI is more useful than the basic ROI figure. While the time factor is the key for annualized ROI, it still does not include the investment risks and other situations.

Recent Articles

Crafting a Winning Business Pitch: Exploring its Significance and Strategic Advantages

Crafting a Winning Business Pitch: Exploring its Significance and Strategic Advantages

Crafting a Winning Business Pitch: Exploring its Significance and Strategic...

Read More
Win the Pitch - Crafting an Impressive Competitor Slide that Takes You to the Top (1)

Win the Pitch – Crafting an Impressive Competitor Slide that Takes You to the Top

Win the Pitch - Crafting an Impressive Competitor Slide that...

Read More
cash flow modeling guide

Cash Flow Modeling: A Comprehensive Guide

Cash Flow Modeling: A Comprehensive Guide Cash flow modeling is a...

Read More
Interim CFO Role And Benefits of Hiring

Interim CFO: Role And Benefits of Hiring

Interim CFO: Role And Benefits of Hiring Thriving in today's complex...

Read More
Why, When and How to Hire a CFO 

Why, When and How to Hire a CFO

Why, When and How to Hire a CFO  Introduction In today's dynamic...

Read More
10 KPIs for the CFO Track your performance

10 KPIs for the CFO: Track your performance

10 KPIs for the CFO: Track your performance In the intricate...

Read More
cfo vs controller

Controller vs CFO: Understanding the Difference

Controller vs CFO: Understanding the Difference In the complex world of...

Read More
jernej adamic

Episode 5: Investor Insight

Mastering Business Consulting and Impactful Strategies In a conversation with Sadaf...

Read More
Philippe youtube

Episode 4: Investor’s Insight

Exploring Fundraising, Financial Analysis And Capital Market In this podcast episode,...

Read More

Episode 3: Investor Insight

Bridging the Gap Between Founding and Investing in Startups Sadaf Abbas...

Read More

Episode 1: Business Catalyst

Bridging the Gap Between Founding and Investing in Startups In this...

Read More
Seeds to Ledger Accounting & Cap Table Solutions for Smart Farming

Seeds to Ledger: Accounting & Cap Table Solutions for Smart Farming

Seeds to Ledger: Accounting & Cap Table Solutions for Smart...

Read More
podcast feature image

Episode 2: Business Catalyst

Bridging the Gap Between Founding and Investing in Startups In this...

Read More
podcast fabian westerheide

Episode 2: Investors Insight

Bridging the Gap Between Founding and Investing in Startups In this...

Read More
Why and when should you hire a CFO Services for Small Business

Why and when should you hire a CFO Services for Small Business

Why and when should you hire a CFO Services for...

Read More
difference between capital and operating budget

Difference between Operating and Capital Budgets – A Comprehensive Guide

Difference between Operating and Capital Budgets - A Comprehensive Guide Ever...

Read More
david duchemin

Episode 1: Investor Insight

Bridging the Gap Between Founding and Investing in Startups In this...

Read More
CBI program benefit busisnesses (1)

How Do Caribbean CBI Programs Benefit Businesses and Individuals?

How Do Caribbean CBI Programs Benefit Businesses and Individuals? Caribbean Citizenship...

Read More
pet seat cover- case study

Financial Model and Marketing Tool for Pet Seat Cover Business- Case Study

Financial Model and Marketing Tool for Pet Seat Cover Business-...

Read More
Unlocking Business Success with an Online Degree in Management and Accounting

Unlocking Business Success with an Online Degree in Management and Accounting 

Unlocking Business Success with an Online Degree in Management and...

Read More
what is operating budget

What is an Operating Budget, And How To Create One?

What is an Operating Budget, And How To Create One? Operating...

Read More
Comprehensive Business Blueprint for An Automobile Business

Comprehensive Business Blueprint for An Automobile Business

Comprehensive Business Blueprint for An Automobile Business Introduction  The Oak Business Consultant...

Read More
blockchain business model

Blockchain Business Model and Pitch Deck- Case Study 

Blockchain Business Model and Pitch Deck- Case Study  Introduction  Oak Business Consultant...

Read More
ai in ecommerce

Future Trends of E-Commerce with AI: Comparison between Developing and Developed Countries

Future Trends of E-Commerce with AI: Comparison between Developing and...

Read More
blockchain marketing plan

Blockchain Marketing Plan-Case Study

Blockchain Marketing Plan-Case Study Introduction  The Oak Business Consultant is a business...

Read More
What is Capital Budgeting Its Importance Techniques and Examples

What is Capital Budgeting: Its Importance, Techniques and Examples

What is Capital Budgeting: Its Importance, Techniques and Examples Capital Budgeting Capital...

Read More
Longevity Medical Clinic Financial Model and Business Plan

Longevity Medical Clinic Financial Model and Business Plan-Case Study

Longevity Medical Clinic Financial Model and Business Plan-Case Study Introduction  The Oak...

Read More
Healthy Frozen Meals Financial Model

 Healthy Frozen Meals Financial Model – Case Study

Healthy Frozen Meals Financial Model - Case Study Introduction Oak Business Consultant...

Read More
Ride-Hailing Startup Financial Model-Case Study

Ride-Hailing Startup Financial Model-Case Study

Ride-Hailing Startup Financial Model-Case Study Introduction The Oak Business Consultant presents the...

Read More

Ride-Hailing Blueprint: From Business Plan to Pitch Deck

Ride-Hailing Blueprint: From Business Plan to Pitch Deck Introduction OAK Business Consultant...

Read More
waste management plant-case study

Waste Management Plant Financial Model-Case Study

Waste Management Plant Financial Model-Case Study Background The case study exemplifies how...

Read More
Income Tax Return Filing and Benefits

Income Tax Return Filing and Benefits

Income Tax Return Filing and Benefits Introduction Navigating the realm of income...

Read More
income tax filing

What are Tax Consultancy Services and why do you need them?

What are Tax Consultancy Services and why do you need...

Read More
Business structure-feature image

What You Need to Know About Business Structures

What You Need to Know About Business Structures Starting a business...

Read More
entertainment industry accounting

Entertainment Industry Accounting: Navigating the Numbers Behind the Scenes

Entertainment Industry Accounting: Navigating the Numbers Behind the Scenes In the...

Read More
Financial Modeling For an Environmental, Social and Governance (ESG ) Startup Company- Case Study

Financial Modeling For an Environmental, Social and Governance (ESG ) Startup Company- Case Study

Financial Modeling For an Environmental, Social and Governance (ESG )...

Read More
non-profit organization-market research for funding

Market Research For a Non-Profit Organization-Case Study 

Market Research For a Non-Profit Organization-Case Study  Background This case study explores...

Read More
Digital HealthCare Trends, Challenges & Future -Research

Digital HealthCare: Trends, Challenges & Future -Research 

Digital HealthCare: Trends, Challenges & Future -Research  Executive Summary This study provides...

Read More
startup branding- feature image

The Startup Branding Journey: Navigating the Transformational Path 

The Startup Branding Journey: Navigating the Transformational Path  In today's fiercely...

Read More
digital asset trading company

Digital Asset Trading Business Financial Model – Case Study

Digital Asset Trading Business Financial Model - Case Study Introduction  The Oak...

Read More
6 employee management tips for startups

How to do Employee Management in Your Start-up Effectively

How to do Employee Management in Your Start-up Effectively Many elements,...

Read More
Case Study- startup renewable energy business

Startup Renewable Energy Business Financial Model – Case Study

StartupRenewable Energy Business Financial Model - Case Study Introduction The oak business...

Read More
startup founder-comprehensive guide

Overcoming Challenges as a First-Time Startup Founder: A Comprehensive Guide

Overcoming Challenges as a First-Time Startup Founder: A Comprehensive Guide Venturing...

Read More
oil and gas industry

Oil and Gas Industry: Overview, Financial Ratios and Future

Oil and Gas Industry: Overview, Financial Ratios and Future Abstract: The oil...

Read More
tips and tricks for startup

10 Tips and Tricks for Startup Founders

10 Tips and Tricks for Startup Founders There is no surefire...

Read More
Case Study- Fintech Start-up Business Financial Model

Case Study- Fintech Start-up Business: Financial Model

Case Study- Fintech Start-up Business: Financial Model Introduction The oak business consultant...

Read More
Best Budgeting Apps For Startups

The 5 Best Budgeting Apps of All-time for Startups or SME Companies

The 5 Best Budgeting Apps of All-time for Startups or...

Read More
what is an outsourced CFO

What is an Outsourced CFO: The Comprehensive Guide to Understanding the Role and Benefits

What is an Outsourced CFO: The Comprehensive Guide to Understanding...

Read More
hair salon startup financial analysis

Hair Salon Startup Business Financial Analysis – Case Study 

Hair Salon Startup Business Financial Analysis - Case Study  Introduction The Oak...

Read More
financial model and projection for eco resort company

Case Study- Financial Model and Projection for Eco-Resort Company

Case Study- Financial Model and Projection for Eco-Resort Company Background The case...

Read More