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I’ve sourced you to a ROI calculator which will do the job for you if you are looking for a way to calculate this based on an investment in finance. There are other ways that this is used in different industries, such as direct marketing, where they will calculate the profit (return) on an investment in advertising, but my answer is assuming you are asking about ROI on a financial investment.

The reason you look for the return on investment is to calculate your percentage of earnings on any given investment. You would start by subtracting your initial investment from the total account value, which would give you your gain. You will then divide your gain by your initial investment, and finally multiply the result by 100.

Simple formula is: Gain / initial investment x 100 = % ROI

For example: You make an investment in a stock of $1000. At the end of the year, the value of the investment has grown to $1400. $1400 – $1000 is a gain of $400.

400 / 1000 = .4 x 100 = 40% return on investment.

The calculator I sourced you to will also break that down into an annualized return if you enter the beginning and ending dates, so that you know what your investment earned over a period of time.