Return on Investment Calculator | Calculate ROI

Return on Investment (ROI) tells you how much profit an investment generated relative to what you put in — a simple, universal way to compare completely different opportunities on the same scale.

The formula

ROI = (Final Value − Initial Investment) ÷ Initial Investment × 100

For example, if you invest R20,000 and it grows to R23,000, your ROI is (R23,000 − R20,000) ÷ R20,000 × 100 = 15%.

Why raw ROI isn't the whole picture

• Time matters: a 15% ROI over 1 year is very different from 15% over 5 years. Use annualised ROI — roughly ROI ÷ number of years for simple comparisons, or a compound annual growth rate (CAGR) formula for more precision — to compare investments held for different periods.
• It ignores risk: a high ROI on a volatile investment isn't automatically "better" than a lower, steadier ROI — factor in how much the value could have swung along the way.
• Costs eat into it: brokerage fees, platform charges, and tax on gains all reduce your real, net ROI versus the headline number.

Using ROI for real decisions

ROI is most useful for comparing genuinely comparable options — two similar investments, or a business decision against its cost. It's less useful on its own for comparing, say, a fixed deposit against equities, since the risk profiles are completely different. Pair it with your actual timeline and risk tolerance before deciding.

Check your Financial Health Score to track your overall position over time, or compare savings accounts if you're weighing a guaranteed return against a market-linked one.

The formula above is standard finance mathematics. This is general information, not personal financial or investment advice. This article is editorially independent; see how we make money.