BusCalcTools

ROI Calculator — Calculate Return on Investment Instantly

Measure return on any business spend — marketing, equipment, training. Add a time period to get an annualised rate so you can compare investments of different lengths.

Inputs

$

Total amount spent or invested upfront

$

Total return or revenue generated from the investment

mo

Enables annualised ROI for comparing different-length investments

ROI

Healthy

35.0%

Strong return — this investment paid off well.

Net profit: $3,500.00

Annualised ROI

22.1%

Equivalent yearly rate — use to compare investments of different durations

Net Profit

$3,500.00

Absolute profit or loss in cash terms

How it works

Enter your initial investment (what you spent) and your net return (what came back). The calculator returns ROI as a percentage and net profit in cash. Add an investment period in months to also get an annualised ROI — essential for comparing a 6-month campaign against a 2-year purchase fairly.

See the formula
ROI (%) = ((Net Return − Initial Investment) / Initial Investment) × 100

Annualised ROI = ((1 + ROI/100) ^ (12/months) − 1) × 100

Example: Investment = $10,000 | Net Return = $13,500 | Period = 18 months
  ROI           = (3,500 / 10,000) × 100 = 35%
  Annualised    = ((1.35) ^ (12/18) − 1) × 100 = 22.5%

Frequently Asked Questions

What is ROI?
ROI (Return on Investment) is a measure of the profitability of an investment expressed as a percentage of the original cost. An ROI of 35% means you earned $35 in profit for every $100 invested. A positive ROI means the investment was profitable; a negative ROI means it was a loss.
How do I calculate ROI?
ROI (%) = ((Net Return − Investment Cost) / Investment Cost) × 100. Net Return is the total income or value generated. Investment Cost is what you paid. Example: invest $5,000, earn back $6,500 — ROI = (1,500/5,000) × 100 = 30%.
What is a good ROI for a small business?
A 15–30% annual ROI is considered good for most small business investments. Marketing campaigns with ROI above 100% (you earn back more than double what you spent) are excellent. Any positive ROI means the investment paid off more than doing nothing.
What is annualised ROI and when should I use it?
Annualised ROI converts a total ROI figure into an equivalent yearly rate, allowing you to compare investments held for different periods. Use it when comparing a 6-month investment against a 2-year investment on an equal basis.
How is ROI used in marketing?
Marketing ROI measures the revenue generated from a campaign relative to what it cost to run it. An ROI above 100% means the campaign returned more revenue than it cost. Most businesses target marketing ROI of 200–500% (earning $2–$5 for every $1 spent).

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For information only. This calculator does not constitute financial, accounting, or tax advice. Consult a qualified professional before making business decisions.