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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*100

Step-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$13,00030%
$5,000$5,75015%
$25,000$22,000-12%

Result: Formula in C2: =(B2-A2)/A2*100 → 30%

Common Variations

ROI as decimal

=(B2-A2)/A2

Returns 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)*100

C2 = number of years

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