📖 Overview
Use this calculator to evaluate if a freelance project is financially healthy.
⚙️ How It Works
This computes return on investment as (final value - initial cost) divided by initial cost, then multiplied by 100.
The Formula
ROI = [(Final Value − Cost) ÷ Cost] × 100
| ROI | Return on Investment, expressed as a percentage |
| Final Value | Current or exit value of the investment |
| Cost | Original amount invested (cost basis) |
💡ROI does not account for time. A 50% ROI over 10 years is very different from 50% over 1 year. Consider annualizing returns when comparing across different holding periods.
Quick Reference
| Cost | Final Value | ROI |
|---|---|---|
| $10,000 | $12,000 | +20% |
| $10,000 | $15,000 | +50% |
| $10,000 | $8,500 | −15% |
| $50,000 | $75,000 | +50% |
Practical Tips
💡 Compare ROI alongside risk and time horizon.
💡 Use the same cost basis across alternatives.
💡 Track ROI repeatedly to identify trend quality.
Frequently Asked Questions
❓ Can ROI be negative?
Yes, if final value is below initial cost.
❓ Is higher ROI always better?
Not if risk, liquidity, or volatility differs substantially.