Maximize success and boost decisions with this free ROI calculator. Instantly assess investment returns and feel confident in your financial strategy.
Start making smarter choices—it's easy with these simple steps:
Return on Investment (ROI) is a widely used financial metric that evaluates the efficiency and profitability of an investment. It quantifies the gain or loss relative to the original investment cost, allowing businesses to assess how well their capital is being utilized.
ROI is calculated with a simple formula:
ROI (%) = (Net Profit / Cost of Investment) × 100ROI helps investors and business owners:
Track ad spend versus sales to assess campaign performance.
Evaluate profitability from property flipping or rental income.
Demonstrate value to investors and monitor capital deployment.
Analyze returns from renewable energy investments or energy-efficient upgrades.
If your net profit is negative, ROI will be below 0%. This signals a loss and indicates an underperforming investment.
ROI equals zero when net profit is $0—no gain, no loss.
High ROI from a low-cost investment might look impressive but may have low actual dollar value. Always consider scale.
Use Annualized ROI to evaluate long-term or multiyear investments:
Annualized ROI = [(1 + ROI)^(1/n)] - 1Where n is the number of years.
ROI accuracy suffers if indirect costs like fees or operational expenses are excluded.
This high ROI justifies increasing the digital ad budget.
A moderate return in a stable market with low risk.
Take control of your financial future—try the ROI Calculator now and unlock smarter, faster investment decisions.
| Investment Cost | Net Profit | ROI |
|---|---|---|
| $5,000 | $7,500 | 50% |
| $10,000 | $12,000 | 20% |
| $2,000 | $3,000 | 50% |
| $50,000 | $70,000 | 40% |
| $100,000 | $90,000 | -10% |
| $30,000 | $30,000 | 0% |
| $1,000 | $1,200 | 20% |