﻿ ROI Calculator - A.Tools

# ROI Calculator

Amount Invested
Amount Returned
Investment Time
Length Dates
Investment Length
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End Date
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Return On Investment (ROI) Calculator can help you calculate the return on investment (ROI), investment gain, and annualized ROI rates for any investment opportunity.

### What is the "ROI"?

"ROI" stands for Return on Investment. It is a financial metric used to evaluate the profitability or efficiency of an investment relative to its cost. ROI is calculated by dividing the net profit from an investment by the initial cost of the investment and expressing the result as a percentage or a ratio.

The formula for ROI is:

$���=\frac{\text{Net Profit}}{\text{Initial Investment Cost}}×100\mathrm{%}$

• I = The initial amount invested plus any other costs.

• R = The amount returned at the end of the investment period.

Note: The calculation must be multiplied by 100 to convert the decimal number to a whole percentage.

A higher ROI indicates a more favorable return on the investment, while a lower ROI suggests that the investment may not be as profitable. ROI is commonly used in business and finance to assess the performance of various investments, marketing campaigns, projects, or initiatives. It helps stakeholders make informed decisions about allocating resources and evaluating the effectiveness of their strategies.

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