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ROI Calculator

Compare an investment, a marketing campaign, or a new piece of equipment by its return on investment. Enter what you put in and what you got back.

Formula / method: Net profit = Gain - Investment. ROI = (Net profit / Investment) x 100.

Enter your figures and click Calculate.

How to Use

  1. Enter the total amount invested.
  2. Enter the total gain or return received.
  3. Optionally enter the number of years for an annualized view.
  4. Click Calculate ROI.
  5. Compare the result with other opportunities before deciding.

Why This Matters

ROI turns a vague success into a comparable number. A campaign that returns $5,000 sounds good until you learn it cost $4,500, a return of only about 11 percent. Another campaign returning $2,000 on a $500 spend is far stronger at 300 percent. ROI also helps rank choices when money is limited: the highest return per dollar should usually win, provided the risk is similar. Always include all costs, including time, fees, and tools, or the return will look better than it really is.

Frequently Asked Questions

What is a good ROI?

It depends on risk and time. A low-risk investment may return a few percent a year, while a business project should usually return much more to justify its risk.

Can ROI be negative?

Yes. A negative ROI means you got back less than you invested, which is a loss.

Does ROI account for time?

Basic ROI does not. A 50 percent return over ten years is weaker than the same return in one year, which is why the annualized figure is also shown.

Should I include my own time as a cost?

For a fair business comparison, yes. Unpaid time is a real cost, even if no cash changed hands.

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