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How to calculate return on investment (ROI)
How much did you gain or lose compared with what you paid?
ROI % = (final value + dividends − cost) ÷ cost × 100ROI measures your gain (or loss) as a percentage of what you invested, so you can compare investments of different sizes.
Example 1: a gain
You bought shares for 1,000 rials, received 50 rials in dividends, then sold for 1,250.
Gain1,250 + 50 − 1,000 = 300
ROI300 ÷ 1,000 × 100
ROI= 30%
Example 2: a loss
You invested 2,000 rials and it is now worth 1,800.
Change1,800 − 2,000 = −200
ROI−200 ÷ 2,000 × 100
ROI= −10%
Watch out: ROI doesn't tell you how long it took. 30% in one year is very different from 30% over ten — see "annualised return" in the Medium level.
All content on this site is for educational purposes only and is not investment advice or a recommendation. Past performance does not guarantee future results. Consult a licensed adviser before making any investment decision.