A clear result in a few inputs.
- Enter the requested values.Use consistent units and the real values for your scenario.
- Read the main result and breakdown.NumLuma recalculates immediately when an input changes.
- Check the formula and assumptions.Use the supporting context before making a real-world decision.
What this calculator does
ROI is a simple return measure that compares net gain with the initial amount invested. It is useful for a quick comparison, but it does not account for how long the investment was held unless you pair it with a time-based metric such as CAGR.
What to know before you use the result
- ROI = net gain ÷ initial investment.
- ROI by itself does not annualize the result.
- Fees, taxes or additional cash flows must be included in the inputs if they are part of the comparison.
Common mistakes to avoid
- Comparing a one-month ROI with a five-year ROI as though time were identical.
- Using revenue instead of final value or net proceeds.
- Leaving out meaningful costs while including all benefits.