# ROI calculator

The Invezz ROI calculator quickly and easily forecasts the return on investment you should expect to receive from different investments. Read on to see how our ROI calculator works.

## How to use our ROI calculator

To calculate return on investment with our ROI calculator, follow these steps:

- Enter in the amount of your investment.
- Enter in the amount of your return.
- Enter in your investment time frame, which should include a start date and end date, or simply a set number of years.
- Click calculate to see your ROI, expressed as a percentage.

## How the ROI calculator works

Our ROI calculator takes raw financial information from your investments and translates them into two outputs: your final ROI percentage, and your annual ROI percentage. This helps you see how an investment performs over time and can help you hone your investment strategy.

## Why should I use it?

One of the most powerful and important concepts to understand in economics is opportunity cost: the loss of potentially larger gains when you choose one less profitable investment option instead of a more profitable one. By precisely calculating the ROI of a given investment vehicle, you can not only see the raw size of your returns, but also figure out if you might be able to grab bigger gains by investing in a different asset.

## What is ROI?

Return on Investment (ROI) measures the performance of an investment, determining how much you stand to make by investing in an asset over a given time period. To calculate ROI, divide your return by the cost of the investment. The result is then expressed as a percentage, or a ratio.