Return on Investment (ROI) Calculator

The calculator first adds any additional expenses — such as broker fees, renovation costs, agency commissions, or transaction charges — to the initial investment to determine the Total Cost Basis. This step is important because omitting fees overstates your actual return. Net Profit is then calculated by subtracting the Total Cost Basis from the Final Value or revenue received. If the final value is lower than total costs, net profit is negative and the ROI will be negative, indicating a loss. ROI percentage is derived by dividing Net Profit by the Total Cost Basis and multiplying by 100: ROI = (Net Profit ÷ Total Cost) × 100. A positive ROI means the investment returned more than it cost; a negative ROI means a loss relative to total costs. Note that standard ROI does not account for the time period — a 20% ROI earned in one year is far better than the same return earned over ten years.