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ROI Calculator

Calculate the Return on Investment (ROI) and evaluate the profitability of your investments.

Return on Investment 50%
Absolute Gain € 5.000
Investment € 10.000
Final Value € 15.000
Multiple 1.5x
Total ROI 100%
Annual ROI 14.87%
CAGR 14.87%
Investment A
Investment B
Investment A Investment B
Total ROI 50% 80%
Annual ROI (CAGR) 14.47% 12.47%
Absolute Gain € 5.000 € 8.000
Gain per Year € 1.667 € 1.600

What is ROI?

Return on Investment (ROI) is one of the most important metrics for evaluating the profitability of an investment. It shows the ratio between profit and invested capital.

The ROI Formula

ROI = (Gain / Investment) × 100%

ROI = ((Final Value - Investment) / Investment) × 100%

CAGR - Compound Annual Growth Rate

Annualized ROI (CAGR) takes into account the investment period and shows the average annual return:

CAGR = ((Final Value / Initial Value)^(1/Years) - 1) × 100%

Limitations of ROI

  • No time consideration: Simple ROI ignores how long capital was tied up
  • No risk assessment: Higher ROI often means higher risk
  • No cash flow analysis: Intermediate payments are not considered
  • No inflation: Real return after inflation can be significantly lower

Frequently Asked Questions

A "good" ROI depends heavily on the asset class and risk taken. As a rule of thumb: ROI should at least offset inflation (2-3%) and provide a risk premium. For stocks, the historical average is about 7-10% annually.

ROI shows the total return of an investment, regardless of duration. CAGR (Compound Annual Growth Rate) normalizes this return to one year, allowing comparison of investments with different time horizons.

Yes, a negative ROI means you lost money. For example, if you invest €10,000 and end up with only €8,000, your ROI is -20%.
Example Scenarios
Stock Gain 10.000 € → 15.000 € (50% ROI) Real Estate 50.000 € → 65.000 € (30% ROI) Startup Investment 5.000 € → 12.000 € (140% ROI) Loss Example 20.000 € → 18.000 € (-10% ROI)
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