Finance & Interest
Basic

Return on Investment

Percentage gain or loss on an investment.

Formula

ROI=Vf−ViVi×100%ROI = \frac{V_f - V_i}{V_i} \times 100\%

Variables

V_fFinal value
V_iInitial value

Example

Buying at $200 and selling at $250 is an ROI of 50/200 × 100% = 25%.

Did You Know?

ROI ignores time, so a 50% return over one year and over ten years look identical — a common pitfall.

roiinvestmentreturn