The Foreign Investor ROI Calculator estimates annual operating profit, total return and annualized return over an investment period in Saudi Arabia. Enter initial investment, annual revenue, operating costs, an estimated tax rate, investment duration and expected exit value to create an initial feasibility view.
How it works
The calculator subtracts operating costs from revenue, applies the entered tax rate to positive operating profit and calculates annual net profit. Net profit is multiplied by the investment term, added to exit value and compared with the original investment.
The formula
The tax rate is an editable planning assumption, not a tax determination. Actual treatment can vary with ownership, entity type, zakat and tax rules, incentives, carried losses and international agreements.
Worked example
An initial investment of SAR 1,000,000 produces SAR 500,000 in annual revenue and SAR 300,000 in operating costs. Operating profit is SAR 200,000 and net annual profit after an assumed 20% tax is SAR 160,000. Over five years, cumulative profit is SAR 800,000. With a SAR 1.2 million exit value, total return is SAR 1 million and total ROI is 100%.
Frequently asked questions
Is ROI the same as annual profit?
No. ROI measures total profit relative to initial investment. Annualized return converts the total result into an annual rate for comparing investments with different durations.
Does a 20% tax rate apply to every investor?
No. It is an editable assumption. Treatment may differ by ownership, entity, activity, incentives, treaties and applicable zakat or tax obligations.
Does the calculator include debt financing?
Not separately. Include financing costs within operating costs or use a detailed cash-flow model when debt is material.
What is exit value?
It is the expected amount received when the business or investment stake is sold at the end of the period, subject to transaction structure, debt, tax and sale costs.
What is a basic step for a foreign investor?
A foreign investor generally completes investment registration with MISA before issuing a commercial registration and obtaining activity-specific approvals.
This is a preliminary analytical tool, not an investment valuation or legal or tax opinion. Use detailed cash flows and qualified advice before committing capital.