Return on investment
Net gain including additional income divided by initial cost.
How this works
Total ROI = (ending value + additional income received − initial cost)/initial cost × 100%. Initial cost must be positive. Additional income should be separate from the ending value so that it is not counted twice.
Example
The illustration may use different inputs from the reproducible default inputs listed below.
The defaults give ($12,000 + $500 − $10,000)/$10,000 × 100 = 25%. With all reset-default inputs, total roi: 25%.
- Total initial cost ($)
- 10000
- Ending value ($)
- 12000
- Additional income received ($)
- 500
- Total ROI
- 25%
Scope and assumptions
This is a total percentage over the entered investment’s life, not an annualized return. There is no timing model for interim cash flows. Fees and taxes are included only to the extent you account for them in the inputs; the result is descriptive, not a future-return prediction.
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