Summary

Use simple ROI to compare profit with total invested cost; it is not an annualized return.

Calculation details

Additional costs increase the investment denominator and reduce net profit. Time, cash-flow timing, inflation, and compounding are not included.

Formula

Net profit = final value − initial investment − additional costs. ROI = net profit ÷ (initial investment + additional costs) × 100.

Worked example

$10,000 investment sold for $12,500

With $500 of additional costs, net profit is $2,000 and simple ROI is about 19.05%.

How it works

Enter the initial amount, ending value, and any extra costs. The total cost must be greater than zero.

Frequently asked questions

What does this ROI calculation estimate include?

It measures simple, non-annualized return against total entered cost.

When is this ROI calculation most useful?

When you need a quick percentage return on a completed or planned investment before annualizing.

Are displayed values rounded?

The formula keeps full numeric precision. Values are rounded only when formatted for display.

Can actual results differ?

Yes. Timing, fees, taxes, and opportunity cost are outside this simple ROI measure.

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