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Make informed business decisions with our ROI calculator. Calculate return on investment percentage, total profit, and annualized returns for any business investment or marketing campaign.
The amount you initially invested
Current or ending value of investment
Fees, maintenance, taxes, etc. (optional)
Dividends, interest, rental income, etc. (optional)
Total ROI:
+50.00%
Rating:
Excellent Return
ROI = (Total Return - Total Investment) / Total Investment × 100
= ($15,000 - $10,000) / $10,000 × 100
= +50.00%
Return on Investment (ROI) is the fundamental metric for evaluating whether an investment—whether in stocks, real estate, business ventures, or marketing campaigns—generates acceptable returns relative to cost. Our ROI calculator provides comprehensive analysis including percentage return, annualized return for time-based comparison, and break-even analysis to make informed investment decisions.
Basic ROI is calculated as (Gain - Cost) / Cost × 100%. However, this simple formula doesn't account for time, which is crucial for comparing investments. An investment returning 30% over 5 years (6% annualized) is less attractive than one returning 20% in 1 year, despite the higher total return. Our calculator provides both perspectives to enable apples-to-apples comparisons.
ROI is a starting point, not the complete picture. Consider opportunity cost—money invested here can't be invested elsewhere. Factor in risk—higher returns typically come with higher risk. Account for liquidity—some investments tie up capital for years. For business investments, include soft benefits like improved efficiency, customer satisfaction, or competitive positioning.
In marketing and business, ROI proves initiative value. A $10,000 ad campaign generating $50,000 in revenue has 400% ROI, clearly justifying the spend. Use ROI to compare projects, prioritize initiatives, and communicate value to stakeholders. Remember: ROI should be one of several decision factors, alongside strategic fit, risk tolerance, and long-term business goals.
It depends on industry and investment type. Stock market averages 7-10% annually. Real estate often yields 8-12%. Business ventures might target 20-30%+. Marketing campaigns vary widely. Compare ROI to alternatives and industry benchmarks rather than absolute numbers.
Estimate monetary value where possible. Employee training might reduce turnover (calculate replacement costs saved). Better equipment might increase productivity (calculate time savings value). Customer service improvements might increase retention (calculate lifetime value impact).
Not necessarily. Consider risk, time commitment, required expertise, opportunity cost, and strategic fit. A 50% ROI on a risky venture might be less attractive than a reliable 15% ROI. Also factor in liquidity—how quickly can you access your money if needed?