INVESTING / SIMPLE ROI
Measure cumulative gain or loss against total invested cost while keeping final value, income received, and additional costs visible.
Use boundary
Final value and income are combined, total invested costs are subtracted, and the resulting gain or loss is divided by total invested cost.
ROI = (final value + income - total invested cost) / total invested cost x 100.
What you provide
What you receive
Use boundary
Simple ROI ignores holding period, timing, discount rates, financing, taxes, and risk; use XIRR for irregular dated cash flows.
This is an educational planning estimate. Confirm lender, issuer, tax, accounting, and contractual rules with the relevant provider or qualified adviser before acting.