ROI Calculator

ROI (Return on Investment) measures how much profit or loss an investment produced, expressed as a percentage of what was originally invested.

ROI = Net Profit ÷ Total Investment × 100, where Net Profit = Total Return − Total Investment. A ₱100,000 investment that returns ₱130,000 has a net profit of ₱30,000 and an ROI of 30%.

There's no single universal number — what counts as a good ROI depends on the risk involved, how long the money was tied up, your industry, what alternative opportunities were available, and your own goals. A 10% ROI might be excellent for a low-risk, short-term expense and unremarkable for a high-risk, multi-year venture.

A negative ROI means the investment returned less than the amount invested — a loss. A −20% ROI on a ₱100,000 investment means ₱20,000 was lost.

A 0% ROI means the investment returned exactly the amount invested — you got your money back, but earned no additional profit.

Yes. A 100% ROI means the return was double the investment. There's no upper limit — a small investment with a very large return can have an ROI far above 100%.

Yes, down to −100% when the total return is ₱0 (a complete loss of the invested amount). This calculator doesn't allow the total return itself to be negative, so −100% is the floor.

Profit is an absolute peso amount; ROI is that profit expressed as a percentage of what was invested. A ₱1,000,000 investment and a ₱100,000 investment could both produce the same ₱200,000 profit, yet have very different ROI percentages, because ROI accounts for how much money was put at risk to earn it.

Profit margin measures profit relative to revenue (Profit ÷ Revenue × 100) — useful for pricing a product. ROI measures profit relative to investment (Profit ÷ Investment × 100) — useful for judging whether putting money into something was worth it. They answer different questions and are usually different numbers for the same transaction.

Markup measures profit relative to a product's cost of goods (Profit ÷ Cost × 100). ROI measures profit relative to an investment (Profit ÷ Investment × 100). They're algebraically similar formulas applied to different questions — a product's markup and a business's overall ROI usually describe entirely different things and shouldn't be used interchangeably.

A simple yearly equivalent of ROI, used to compare investments held for different lengths of time: Annualized ROI = ROI ÷ Investment Period in Years. A 30% ROI over 2 years is a 15% simple annualized ROI.

No. This calculator's annualized ROI divides the total ROI evenly across the period (straight-line). CAGR (Compound Annual Growth Rate) assumes the gain compounded smoothly year over year, which requires more information than a single investment and return figure actually provides. Using a compounding formula here would imply an assumption the data doesn't support.

ROI alone doesn't capture risk, how long your money was tied up, how much absolute profit was involved, how easily the investment can be converted back to cash, or your broader business goals. A very high ROI on a small, risky, illiquid investment isn't automatically better than a moderate ROI on a large, stable one.

Only what you include. Add setup costs, fees, or other expenses using the optional additional costs field so they're reflected in the total investment. This calculator doesn't automatically calculate VAT, percentage tax, or income tax.

Yes — ROI works for any investment where you can identify a total amount put in and a total amount received back: equipment, marketing campaigns, inventory, software, training, or expansion costs. This calculator provides a mathematical estimate, not financial or investment advice.