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Return on Investment

Measures the percentage return on an investment relative to its cost.

Interactive inputs coming — use the formula and example below.

Rechenbeispiel

Turning $1,000 into $1,250 is a 25% ROI.

So funktioniert's

  • Use the formula below with your own figures.

Die Formel

ROI = (gain − cost) ÷ cost × 100%.

Rechenbeispiel

Turning $1,000 into $1,250 is a 25% ROI.

Häufige Fragen

Does ROI include time?

No — use CAGR for annualized returns.

What counts as cost?

Include fees and taxes for a true figure.

Tipps

  • Time in the market beats timing the market.
  • Reinvest returns to let compounding work.
  • Keep fees low — they compound against you.

Begriffe

Compounding
Earning returns on past returns.
CAGR
The smoothed annual growth rate.
Yield
Income as a percent of price.