2/24/2022 RETURN ON INVESTMENT (ROI) CALCULATOR

Input data in YELLOW cells. If the asset is denominated in foreign currency enter the exchange rates (units of local currency per 1 unit
foreign currency) at purchase date and current date (or sale date).

Asset Type OTHER Local Currency RETURN ON INVESTMEN

Purchase Date 05/07/2020 0 Unrealized Gain TRADING IMPACT FEX IMPACT
Quantity Purchased 125 0 Unrealized Trading Gain
20.0%
Purchase Price 100.00 0 Unrealized Forex Profit 15.0%
Total Cost 12,500.00 500 Realized Gain 10.0% 17.5% 17.5
5.0%
Exchange Rate at Purchase 0.80 1,750 Realized Trading Gain
0.0%
Sale (Expiry) Date 31/12/2024 -1,250 Realized Forex Loss -5.0% -12.5% -12.5
Quantity Sold 125 500 Total Capital Gain -10.0%
Sale Price 120.00 5.0% ROI -15.0%
Unrealized Realized Tot
Exchange Rate (Current) 0.70 1.1% Annualized ROI

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units of local currency per 1 unit of

RETURN ON INVESTMENT
RADING IMPACT FEX IMPACT

Unrealized Realized Total

17.5% 17.5% TRADING IMPA #N/A 17.5% 17.5%
FEX IMPACT #N/A -12.5% -12.5%

-12.5% -12.5%

Unrealized Realized Total

(Source: Investopedia.com)
ROI
Return on Investment (ROI) is a performance measure used to evaluate the profitability of an
investment. ROI tries to directly measure the amount of return on a particular investment, relative to the
investment’s cost. To calculate ROI, the return of an investment (sales proceeds or current value minus
original cost) is divided by the cost of the investment. The result is expressed as a percentage or a ratio.

ANNUALIZED ROI
The annualized ROI calculation provides a solution for one of the key limitations of the basic ROI
calculation, which does not take into account the length of time that an investment is held, also referred
to as the holding period. The formula for calculating annualized ROI is as follows:

Annualized ROI = [(1+ROI)^1/n−1]×100%, where: n = Number of years for which the investment is held

UNREALIZED GAINS AND LOSSES

Gains or losses are said to be "realized" when an asset owned (stock or other investment) is actually sold.
Unrealized gains and losses are also commonly known as "paper" profits or losses. An unrealized loss
occurs when an asset's market value decreases after an investor buys it, but has yet to sell it. If the value
rises above the original purchase price, the investor would have an unrealized gain for the time they hold
onto the stock.