Our Return on Investment calculator is mainly known as All-In-One ROI calculator. It is an excel spreadsheet based tool with wide range of features. This calculator can be used to calculate regular investment, extra investment at intervals and more. It can also be used as Interest on Investment Calculator, Future Value Calculator, Investment Calculator, Compounding Interest Calculator and more. You can also use it as Lump-sum Calculator, Mutual Funds Return on Investment Calculator, Fixed Deposit Calculator, Certificate of Deposit Calculator, Stock Market Return on Investment Calculator and many more types of investing calculators.
Note: (1) Click on “Enable Editing” when you see “Protected View” message in your excel spreadsheet. (2) Many of the excel based functions are not compatible with google spreadsheets. Keeping this in mind, we have provided 3 different compatible templates with google spreadsheet.
- 1 What Is Return on Investment?
- 2 Return on Investment (ROI) Formula
- 3 Return on Investment (ROI) Example
- 4 How to Calculate ROI in Business?
- 5 Example of ROI in Business
- 6 How to Calculate ROI for a Project?
- 7 Example to ROI in Project
- 8 Advantages / Benefits / Pros of ROI
- 9 Disadvantages / Limitations / Cons of ROI
- 10 How to Calculate Return on Investment?
- 11 Who can Use ROI Calculator?
- 12 Conclusion
What Is Return on Investment?
Return on Investment (ROI) refers to financial ratio between initial investment and profit. It is used to calculate the return generated from investment. It helps to evaluate performance of investment by comparing with other investments. ROI determines amount to be received in future for a particular investment.
Return on Investment (ROI) Formula
The return on investment formula is as follows:
Return on Investment = (NP – CI) / CI
Here NP refers to Net Profit and CI refers to Cost of Investment
Return on Investment (ROI) Example
Let us take an example of Return on Investment to understand it better. Assume that you have purchased stock worth of 100,000. Consider that you are expecting 12% return for next 7 years. You can expect your stock to be value at 221,068 based on your scenario. Let us evaluate return on investment percentage from above formula.
ROI = (221,068 – 100,000) / 100,000 = 121.068%
How to Calculate ROI in Business?
It is a ratio use in accounting, finance and valuation. Return on investment in business helps to compare profits in business keeping in mind initial capital invested. We can calculate ROI in business by using different methods of ROI. Usually you can calculate ratio by dividing after-tax earnings (i.e. Net Profit) by cash/equivalents (i.e. Total Investment).
Example of ROI in Business
Let us take an example of ROI in business to understand it. Assume that you have decided to purchase an office rather than taking on lease. Consider that you have purchased a property at 350,000 expecting 7.25% rate of returns on it after 10 years. Your property valuation will be 704,760 after 10 years based on your data. Let us now calculate ROI in business.
ROI = (704,760 – 350,000) / 350,000 = 101.360%
How to Calculate ROI for a Project?
ROI for a project helps to anticipate value of project based on potential profitability. It is a tool which helps companies to calculate project value and how it will impact on profits. We can calculate ROI for project by anticipating profit and deducting the cost of project. It will give final income earned from the project.
Example to ROI in Project
Let us now take an ROI example in project to understand it. Assume that you are a project manager and you have proposed a new project forecast plan to the management. Consider that project requires investment of 150,000 and it has a potential to give 15% return for next 8 years. Let us now evaluate ROI based on your data.
ROI = (458,853 – 150,000) / 150,000 = 205.902%
Your new project has capacity to earn returns up to 205.902% in 8 years. Usually management look forward for ROI data to make the right choice for company’s growth.
Advantages / Benefits / Pros of ROI
There are some pros and cons of ROI. Let us understand some benefits / advantages of Return on Investment calculator which can be consider to evaluate ROI.
1) Return on investment is very simple to calculate returns on your investment. It is very easy as it requires only net profit and cost of investment to evaluate ROI.
2) It is the performance indicator for all individuals to determine accurate returns on their investments.
3) Return on investment is universal formula. Everyone is aware about the concept of Return on investment.
Disadvantages / Limitations / Cons of ROI
There are some advantages and disadvantages of ROI. Let us understand some limitations of ROI calculator which can be consider for calculating ROI.
1) ROI calculation can differ from person to person depending on formula used in calculation. It can be manipulate base on individual requirement. For example: when net profit value is consider as before tax value or gross profit. Return on investment percentage can vary in such cases.
2) Major disadvantage is that time factor is not consider in it. ROI with higher percentage value might not always be consider as best investment. For example, assume that two investment have same ROI of 30%. First investment is based on 5 years return and second investment return is based on 7 years of tenure. From this we can study that, if time factor is consider investor can easily evaluate most profitable choice.
How to Calculate Return on Investment?
It is straight forward and simple to calculate Return on Investment. You just need to fill some basic details of investment for ROI calculation. You can even use this calculation for regular investment, lump-sum investment along with extra investment at certain intervals. Tools presented here is highly customizable according to most of your needs. One can view updated investment summary, investment table and investment chart after entering basic details.
All the features available in excel sheet and google spreadsheet are explain in the video. You can download the tool from the link and play with it. This tool is 100% free for personal use, customize and modify it. You can customize the spreadsheet as it is not lock with password. These tool provided on our website cannot be use to sell with customized features, host as free, sell or re-sell. You need to get written approval for any such listed activities. Hope you will enjoy it.
Who can Use ROI Calculator?
This excel spreadsheet and google sheet based tool are highly compatible to handle multiple tasks. Your ROI Calculator is available in various themes with colourful investment chart and interactive investment table and summary. This tool is called as All-In-One ROI calculator. As name suggest, it is capable to handle different types of investment calculator. Examples are listed below.
- Interest on Investment Calculator
- Future Value Calculator
- Inflation Calculator
- Mutual Funds Return on Investment Calculator
- Compounding Interest Calculator
- Lump Sum Calculator
- Savings Calculator
- Investment Calculator
- Fixed Deposit Calculator / FD Calculator
- Recurring Deposit Calculator
- Stock Market Return on Investment Calculator
- Certificate of Deposit Calculator / CD Calculator
- And Many More Different Types of Investment Returns Calculator.
You will definitely see the advantages of All-In-One ROI Calculator in your business. You can download excel spreadsheet or google spreadsheet and get full control to customize it according to your requirement. Hope that you will surely like it.
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