How to calculate ROI in Excel manually? Easy 6 Steps

In order to make the best investment decisions, it’s important to learn how to calculate ROI in excel to see your potential return on investment. Good news is you can calculate ROI in Excel. Here we wrote down the steps of setting up a simple return calculator for it. When use it for understanding your potential return, you can make good investment choices for more profit.

return on investment formula excel

We are assuming you are looking to invest your money. But you don’t know how to calculate the return on investment (ROI). Here, Excel is a great tool for tracking your investments and calculating ROI.  By reading this tutorial, you will learn how to set up a table in Excel. Afterwards, you can track your investments and calculate ROI. We will also explain how to use formulas to calculate gains and losses. When you do these steps in your sheet, you can accurately monitor your portfolio’s performance.

Calculating ROI in Excel:roi calculator excel

1. Firstly, you should open Excel and create a new workbook.
2. For preparing calculation, you enter the names of the investments you want to track in the first column.
3. In the second column, you will enter the dates when you purchased each investment.
4. For the third column, you should enter the purchase price of each investment.
5. Now it is time enter the current value of each investment in the fourth column. You can find this value by visiting the website of each investment or by contacting your broker.
6. Last step is to calculate ROI for each investment by subtracting the purchase price from the current value. And you will be dividing by the purchase price. As a shortcut, you can enter this formula in the fifth column: =(C3-D3)/C3. So, you can copy this formula down  for each investment.

After obtaining your step five result, click the “%” icon to convert the contents of cell C2 to a percentage. Because percentages are simpler to compare than the standard values you get from the formula. Hence, it may become a crucial step in case you are preparing a report or presentation with numbers.

Your Excel sheet should now look something like this:

Investment Date Purchased Price on Purchase Date Current Value Return

• Stock A 1/1/2010 $10 $11 10%
• Bond B 2/15/2010 $1000 $1100 10%
• C fund C 3/1/2010 $20 $22 10%

Now, you can calculate the total return by adding up the return of each individual investment. After that, you will be dividing by the number of investments.

For that to work, you can enter this formula in cell E2: =SUM(E3:E5)/COUNT(E3:E5). This will give you the average return of your investments.

how to compute roi in excel

If you copy and follow these steps, you can easily calculate your ROI in Excel. This information will be helpful when making investment decisions. Also, it is good for tracking the performance of your portfolio. As today, we all know calculating ROI is a essential part of being an investor. With Excel, it’s easy to become a successful one tough!

In case you wondered how to calculate return on investment (ROI) in Excel,  it is actually quite simple as you see in above steps.

What does an ROI of 30% mean?

Also, an ROI of 30% means that for every dollar you invest, you will earn 30 cents in return. Calculating ROI is a great way to compare different investments. Because in this way, you can see which one is the better choice. It is also good to use ROI formula  for tracking the performance over time.

The ROI formula is: (Current Value – Purchase Price) / Purchase Price

ROI is simple yet effective formula to compare returns on each investment.

how to calculate rate of return on excel

You must be aware of the purchase price and current value of each investment in order to apply this calculation.
The current value can is probably available in the website’s of each investment.

Once you have this information, you can set up a table in Excel to track your investments and calculate ROI.

How do you find a 12% ROI? roi function in excel

For instance, in case you wanna find a 12% return on investment, you would need to earn 12 cents in return for every dollar you invest. This can be calculated by using the ROI formula: (Current Value – Purchase Price) / Purchase Price

For example, if you invest $100 and the current value of your investment is $112, your ROI would be 12%.

$112 – $100 = $12

$12 / $100 = 0.12

0.12 x 100 = 12%

How do I calculate monthly ROI?

If you want to calculate monthly return on investment, you need to know the purchase price and current value of each investment for each month.

Once you have this data, you can use Excel to create a table that tracks your assets and determines return on investment. The purchase price and current value of each investment for each month must be known in order to compute the monthly return on investment. You may find out the current value by contacting your agent or by going to the website of each transaction.

how to calculate roi in excel for better outcomes

ROI can work as a performance metric to assess the effectiveness of an investment. In essence, it can assist you in assessing a specific’s performance thus far.

Calculating your return on investment (ROI) is good to compare different assets to one other. In this way, you can discover which ones performed better. While doing it, it may be better keeping your high-performing and low-performing assets separate tough.

calculate ROI for future

ROI is simple to calculate as a percentage and to compare with the returns on other investments. But a high return on investment does not always mean superiority. As an illustration, you can suppose you have two investments with identical returns. While the second took five years to give the same profit, the first produced profits in two years.