{
  "slug": "roi",
  "title": "ROI Calculator",
  "heading": "ROI Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/roi",
  "summary": "Return on investment, simple and annualized.",
  "description": "Compute return on investment from initial cost and final value, plus annualized return over the holding period.",
  "formula": "ROI = (Value − Cost) / Cost · 100%. Annualized = (Value/Cost)^(1/t) − 1.",
  "dateModified": "2026-10-03",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=roi",
  "inputs": [
    {
      "id": "cost",
      "label": "Initial cost",
      "kind": "number",
      "hint": null,
      "default": 10000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "value",
      "label": "Final value",
      "kind": "number",
      "hint": null,
      "default": 14500,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "years",
      "label": "Holding period",
      "kind": "number",
      "hint": null,
      "default": 3,
      "unit": "years",
      "min": 0.01,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "roi",
      "label": "Total ROI",
      "format": "percent",
      "hint": null,
      "primary": true
    },
    {
      "id": "annualized",
      "label": "Annualized return",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "gain",
      "label": "Net gain",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Initial cost: 10000 $",
      "Final value: 14500 $",
      "Holding period: 3 years"
    ],
    "outputs": [
      "Total ROI: 45.00%",
      "Annualized return: 13.19%",
      "Net gain: $4,500.00"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter initial cost ($).",
      "Enter final value ($).",
      "Enter holding period (years).",
      "Read your total roi on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "cost": 6000,
        "value": 8700,
        "years": 1.7999999999999998
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "cost": 10000,
        "value": 14500,
        "years": 3
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "cost": 16000,
        "value": 23200,
        "years": 4.800000000000001
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How does the roi calculator work?",
      "a": "Compute return on investment from initial cost and final value, plus annualized return over the holding period. The underlying maths is: ROI = (Value − Cost) / Cost · 100%. Annualized = (Value/Cost)^(1/t) − 1."
    },
    {
      "q": "What do I need to enter?",
      "a": "3 values: initial cost, final value, and holding period. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the total roi result mean?",
      "a": "It is returned as a percentage and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/investment",
    "https://www.revenuelab.fyi/toolbox/compound-interest"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — ROI Calculator (https://www.revenuelab.fyi/toolbox/roi)"
}