ROI Calculator
Discover the profitability of your marketing actions or new businesses. Enter the amount invested and the return obtained to measure your financial efficiency.
Measure your marketing and business profitability
How does this tool work?
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Enter the gain or return amount: What you earned from the investment (e.g., dividends, sale proceeds).
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Enter the cost: How much you initially invested or spent.
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Click Calculate: The tool computes the ROI percentage.
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Interpret result: Positive ROI means profit; negative means loss.
How does the ROI calculation work?
ROI (Return on Investment) is a financial metric that indicates how much a company earned or lost relative to an initial investment. The formula used is:
ROI = [(Revenue - Cost) / Cost] x 100
When should I use the ROI calculator?
This calculation is fundamental for any business decision-making, especially in:
- Digital Marketing: To measure the return on ads on Google or Social Media.
- New Projects: To evaluate if opening a new unit will be profitable.
- Training: To analyze if investment in human capital generated a productivity increase.
Expert Tip
ROI does not consider time. To find out how long it will take to recover the invested amount, consider calculating the Payback as well. Check out our compound interest calculator.
ROI Calculator FAQ: Everything You Need to Know
ROI is calculated by taking the Total Gain (Revenue) and subtracting the Cost of Investment. You then divide that net profit by the original cost and multiply by 100 to get a percentage.
It is essential for measuring the return on digital marketing ads, evaluating the feasibility of new physical projects, and analyzing productivity gains after corporate training or equipment upgrades.
The standard formula is:
ROI = ((Net Profit - Cost of Investment) / Cost of Investment) × 100
A "good" ROI depends on the industry. For marketing (ROAS), a 4:1 ratio is often considered good. In real estate or stocks, anything above 7-10% annually is generally healthy.
Yes. A negative ROI means you have lost money. If your investment costs $1,000 but only returns $800, your ROI is -20%, indicating a loss on the capital spent.
ROAS (Return on Ad Spend) only measures revenue against ad costs. ROI is broader—it includes all expenses (salary, software, logistics) to show actual profit.
Standard ROI does not account for time. An ROI of 50% over one year is better than 50% over five years. To include time, you should calculate the Annualized ROI.
For an accurate ROI, include all "hidden" costs: transaction fees, labor time, maintenance, taxes, and the initial purchase price of the asset.
ROI only measures financial gain. It doesn't account for intangible benefits like brand awareness, customer loyalty, or employee morale, which are also valuable.
You can improve ROI by either increasing your total revenue (through better sales or pricing) or by reducing the cost of investment (optimizing processes or lowering overhead).
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