Explanation
Investment return
A return percentage puts profit or loss in proportion to the initial investment. It helps compare amounts, but it does not measure risk or how long the investment took.
Choose the question and enter values
Enter the initial investment and the gross amount received when it is sold. Enter selling fees separately so they are deducted once.
ROI = (G − F − I) ÷ I × 100.
| I | Amount invested (USD) |
|---|---|
| G | Amount received (USD) |
| F | Fees and costs (USD) |
Selling with a fee
| Amount invested | 1,000 |
|---|---|
| Amount received | 1,250 |
| Fees and costs | 50 |
| Result | 20% |
($1,250 − $50 − $1,000) ÷ $1,000 × 100 = 20%.
A loss
| Amount invested | 200 |
|---|---|
| Amount received | 150 |
| Fees and costs | 10 |
| Result | -30% |
($150 − $10 − $200) ÷ $200 × 100 = -30%.
Break even
| Amount invested | 500 |
|---|---|
| Amount received | 510 |
| Fees and costs | 10 |
| Result | 0% |
($510 − $10 − $500) ÷ $500 × 100 = 0%.
Diagram of this result
Bars compare the amount invested, the amount received after fees and the resulting profit or loss on one dollar scale.
The invested amount, net proceeds and profit or loss are listed as exact dollar amounts beside the bars.
Common mistakes
Do not treat gross proceeds as profit. If costs are already deducted from your proceeds, enter zero fees to avoid deducting them twice.
Assumptions and limits
Simple, unannualized return. Fees can exceed proceeds and produce a loss larger than the investment. No tax calculation, dividends, cash-flow timing, or risk adjustment is inferred. Educational estimates only, not financial, tax or investment advice.
Is this an annual return?
No. A 20% result is the total return for the transaction regardless of whether it lasted a month or several years.
Method and references
ROI is the net profit divided by the amount invested, times 100. Investor.gov introduces investment returns, fees and risk at https://www.investor.gov/introduction-investing . The examples above are independent fixtures for this formula.