How to Use the Calculator
- Enter your Initial Investment amount in the first field (e.g., $10,000).
- Enter your Total Returns amount in the second field (e.g., $15,000).
- Click the Calculate button to compute the ROI and Net Profit.
- Use the Reset button to clear all inputs and start over.
Understanding the Results
The calculator provides two key outputs:
- Net Profit: The total profit from your investment, calculated as Total Returns minus Initial Investment.
- Return on Investment (ROI): A percentage representing the gain or loss on your investment, calculated as (Net Profit / Initial Investment) * 100.
Example Calculation
Suppose you invested $10,000 and earned $12,000 in returns:
Net Profit = $12,000 - $10,000 = $2,000
ROI = ($2,000 / $10,000) * 100 = 20%
This means your investment yielded a 20% return.
Practical Applications
The ROI calculator is useful for:
- Comparing different investment opportunities
- Assessing the performance of your current investments
- Making informed financial decisions