Financial
ROI Calculator
Calculate the Return on Investment (ROI) as a percentage. ROI measures the profitability of an investment relative to its cost, helping you compare different investment opportunities.
Excel Formula
=(B2-A2)/A2*100Step-by-Step Explanation
1
B2 represents the final value or gain from the investment
2
A2 represents the initial cost of the investment
3
(B2-A2) calculates the net profit
4
Dividing by A2 converts to a ratio relative to cost
5
Multiplying by 100 converts to a percentage
Example
| Investment Cost (A) | Return Value (B) | ROI % (C) |
|---|---|---|
| $10,000 | $13,000 | 30% |
| $5,000 | $5,750 | 15% |
| $25,000 | $22,000 | -12% |
Result: Formula in C2: =(B2-A2)/A2*100 → 30%
Common Variations
ROI as decimal
=(B2-A2)/A2Returns 0.3 instead of 30
ROI with FORMAT
=TEXT((B2-A2)/A2,"0.0%")Auto-formats as percentage text
Annualized ROI
=((B2/A2)^(1/C2)-1)*100C2 = number of years
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