Investment Profit Calculator
Calculate profit or loss on investments and determine return on investment (ROI).
Enter Investment Details
Investment Results
Enter investment details and click Calculate to see the results
About Investment Profit
Investment profit refers to the financial gain obtained from an investment over a period of time. It's calculated by comparing the final value of an investment to its initial value, taking into account any additional contributions made during the investment period.
Compound Interest
Compound interest is the interest calculated on the initial principal and also on the accumulated interest from previous periods. This effect can significantly increase your investment over time.
A = P(1 + r/n)^(nt)
Where:
- A = Final amount
- P = Principal (initial investment)
- r = Annual interest rate (in decimal)
- n = Number of times interest is compounded per year
- t = Time in years
Return on Investment (ROI)
ROI is a performance measure used to evaluate the efficiency of an investment. It's calculated by dividing the profit from an investment by the cost of the investment.
ROI = (Net Profit / Cost of Investment) × 100%
Compounding Frequency
The frequency at which interest is calculated and added to the principal affects the total return on investment. More frequent compounding leads to higher returns.
- Annually: Interest is calculated once per year
- Semi-Annually: Interest is calculated twice per year
- Quarterly: Interest is calculated four times per year
- Monthly: Interest is calculated twelve times per year
- Daily: Interest is calculated every day
Investment Tips
- Start investing early to take advantage of compound interest
- Diversify your investments to reduce risk
- Consider regular contributions to accelerate growth
- Reinvest dividends and interest to maximize returns
- Be aware that higher returns typically come with higher risk
- Consider inflation when evaluating long-term investment returns