# Investment ROI Calculator

## Simple Investment ROI Calculator by xedricity

This is the easiest and the simpliest investment ROI calculator you could find online. You can quickly calculate your return of investment by straight interest or by compounding investment method made by yours truly xedricity. If you have questions/suggestions regarding this tool please email me using the contact button above.

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This investment ROI (return of investment) calculator is a tool that helps you calculate the return on investment (ROI) for an investments. This calculator will help you calculate both straight method and compounded interests.

This online investment ROI calculator is very useful for those who are looking to invest in something but are unsure about whether or not they should invest in it because they don’t know how much money they could make from it and how much would it take to get your return.

Xedricity’s investment ROI calculator is simplified unlike others. You only need to enter the amount you have invested and enter the interest rate per annum and the years to mature.

### How to use:

Simply enter the following values; `amount` which is the amount you have investment, `Percentage per annum` this is the yearly interest rate of your investment provided by your investment institution, and the `terms` which is the total years of your investment to mature.

## How the straight interest is calculated?

Straight interest calculation method is done by multiplying the amount invested by the percentage per annum then multiplying the product by the term which you will get the final total gain of your investment. Then we add the gain to the amount you have initailly invested.

Example:

• Amount : \$100
• Percentage per annum : 5.5 (%)
• Term : 10 (yrs)
`100\$ * 5.5% = 5.5\$ * 10 yrs = 55\$ gain + 100\$ initial investment = 155\$ final amount`

### How the compounded interest is calculated?

Compounded interest method is calculated by multiplying the amount invested by the percentage per annum then adding the amount to its product. The sum would be then multiplied by percentage per annum and add the product to the sum of its second tier product. This goes on and on until the term has been reached. For better understanding see the example formulation below.

Formula: ((Initial investment * Interest rate) + initial investment)ʸᵉᵃʳˢ

Example:

• Amount : \$100
• Percentage per annum : 5.5 (%)
• Term : 5 (yrs)

Yearly Breakdown:

• 100\$ * 5.5% = 5.5\$ + 100\$ = 105.5\$ (year 1)
• 105.5\$ * 5.5% = 5.80‬\$ + 105\$ = 111.30\$ (year 2)
• 111.30\$ * 5.5% = 6.12‬\$ + 111.30\$ = 117.424\$ (year 3)
• 117.42\$ * 5.5% = 6.46\$ + 117.42\$‬ = 123.88\$ (year 4)
• 123.88\$ * 5.5% = 6.81\$ + 123.88\$ = 130.6934‬\$ (year 5)