Introducing the latest addition to The Calculator Encyclopedia: the Return On Investment (ROI) Calculator. Seamlessly navigate investment decisions with precision and ease using this powerful tool. Whether you’re a seasoned investor or a novice, the ROI Calculator empowers you to make informed financial choices confidently. However,Â what is a **Return On Investment**?

There are many sources that describe what an ROI is. Hence, we will mention some of the best sources to help your understanding.

## What is a Return on Investment (ROI)?

According to Investopedia, Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of several different investments.

Therefore, ROI tries to directly measure the amount of return on a particular investment relative to the investmentâ€™s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. Hence, the result is expressed as a percentage or a ratio.

According to Wikipedia, **Return on investment**Â (**ROI**) is a ratio between theÂ net profit and cost of investment resulting from an investment of some resources. That is, a high ROI means the investment’s gains favorably to its cost.

As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments.^{} In other words, especially in purely economic terms, it is one way of relating profitsÂ toÂ capital invested. Return on investment is a performance measure used by businesses to identify the efficiency of an investment or the number of different investments.

Another description of ROI from InvestingAnswers shows that it measures the gainÂ or lossÂ generatedÂ on anÂ investmentÂ relative to the amount ofÂ money invested. Additionally, ROIÂ is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company’s profitability, or to compare the efficiency of different investments.

## The Return on Investment Calculator with Nickzom

Nickzom Calculator+ (Professional Version) – The Calculator Encyclopedia solves ROI calculations and gives one the **annualized ROI.**

Like every other calculation, there are parameters you need to input its values to get a certain result and the same is true with Nickzom Calculaor+.

Hence, the parameters for Nickzom Calculator+ ROI (Return On Investment) are:

- Amount Invested
- Amount Returned
- Investment Length (Number of Years)

You can access Nickzom Calculator+ (Professional Version) â€“ **The Calculator Encyclopedia**Â via any of these channels:

- Web â€“Â https://www.nickzom.org/calculator-plus
- Android (Paid) â€“Â https://play.google.com/store/apps/details?id=org.nickzom.nickzomcalculator
- Apple (Paid) â€“Â https://itunes.apple.com/us/app/nickzom-calculator/id1331162702?mt=8

Let’s get started:

First, Click on **Calculator Map**

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Then, click on **Financial Calculator**,

Click on **ROI Calculator**

Now, enter the values of the parameters

Then, click on **Calculate** button

There you have it: it’s simple and straightforward with an accurate answer.