Finsy

Return on Investment (ROI) is a financial metric used to evaluate the efficiency or profitability of an investment. It measures the return relative to the investment's cost, expressed as a percentage.

Key Benefits of ROI Analysis:

• Performance Measurement: Compare the efficiency of different investments
• Decision Making: Evaluate whether to proceed with an investment
• Risk Assessment: Understand the potential returns relative to the investment amount
• Portfolio Management: Optimize your investment portfolio allocation

How to Use This Calculator:

• Enter your initial investment amount
• Input the total return amount
• Specify the investment period in years

ROI Formula:

ROI = ((Return Amount - Initial Investment) / Initial Investment) × 100%

Annual ROI Formula:

Annual ROI = Total ROI / Investment Period

Note: This calculator provides a basic ROI analysis. For more complex investment scenarios, consider factors such as inflation, taxes, and additional costs.