Return on investment or ROI is a key number used to determine the profitability of an investment. The ROI can be either positive, zero or negative. There are many ways to calculate your ROI, and the formulas varies depend on your situation. However, the concept behind them is the same.
This formula is a simplified version designed to help people who invest in stocks to calculate their ROI. For the sake of simplicity, data such as inflation, currency fluctuations and taxes are ignored.
The formula for determining the return on investment is defined as:
\(ROI\): Return on investment
\(Price_{current}\): How much is the stock currently trading at
\(Price_{initial}\): At what price were the shares acquired at
\(Shares\): The number of shares you own
\(Fee_{purchase}\): How much did it cost to acquire the shares, for example commissions, fees and taxes.
\(Fee_{sale}\): How much does it cost to sell the shares, for example commissions, fees and taxes.
The ROI is measured in \(\%\)
Find ROI (Stocks)
Use this calculator to find the Return On Assets (ROA) of a company.
How much is the stock currently trading at
At what price were the shares acquired at
The number of shares you own
How much did it cost to acquire the shares, for example commissions, fees and taxes.
How much does it cost to sell the shares, for example commissions, fees and taxes.
Please note, that all calculators provided are for informational and educational purposes ONLY, and should NOT be taken as professional financial advice.
