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Return on Investment illustration

Real Estate · Return

Return on Investment

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Use ROI to express total profit relative to the cost basis of an investment.

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Interactive workbench

Simple profit return

Profit / Investment Cost

$50,000 profit on $250,000 cost equals a 20% ROI.

Check your inputs before you rely on the result — calculations are informational only and depend entirely on the numbers you enter. See our Terms.

Variables and units

  • Profit

    Profit generated by the investment.

    currency

  • Investment Cost

    Total cost of the investment.

    currency

Common mistakes

  • Confusing ROI with annualized return.
  • Using revenue instead of profit.

Step-by-step example

Simple profit return

$50,000 profit on $250,000 cost equals a 20% ROI.