50.00% is the example result. Read it using the units and relationship stated below.
Calculate simple return on investment from investment cost and value returned. The output expresses the gain or loss relative to cost. It does not adjust for the timing of returns or uncertainty.
Enter total value returned, not the profit twice
The formula subtracts investment cost from value returned before dividing by cost. If your starting figure already represents profit after that investment cost, it is not the same input. Establish what the return includes so the cost is not deducted twice.
Compare projects over the same window
Specify when the investment was made and when the return was measured. A short project and a multi-year project can share a simple ROI percentage while exposing the business to different delays and risks. Keep the period visible instead of treating the ratio as a complete investment decision.
Use forecasts as scenarios
Separate verified receipts from estimated future benefits. Run conservative and expected return figures without changing the cost basis between cases. Zero investment cost makes this ratio undefined. A positive output does not establish that the forecast will occur or that funds are available when needed.
Example with the supplied inputs
Investment cost: 20000; Value returned: 30000. Result: 50.00%. The values are illustrative.
Compare one changed input
Investment cost changes from 20000 to 22000. The result becomes 36.36%. All other inputs remain fixed.
Calculation rule
ROI (%) = (return − investment cost) ÷ investment cost × 100.
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Investment cost | 20000 | Use investment cost on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Value returned | 30000 | Use the source quantity represented by value returned. Keep the counted population fixed and avoid mixing a unit value with a period total. |
Output: 50.00% is the example result. Read it using the units and relationship stated below. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Investment cost, Value returned. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Investment cost on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 50.00%.
Change Investment cost from 20000 to 22000 while keeping every other value fixed. The result becomes 36.36%. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.