ROI Calculator
Calculate return on investment (ROI) for business investments, marketing campaigns, or projects. See percentage return and payback period.
2 minutes Easy
How to Use This Calculator
- Choose your calculation mode - Simple for basic ROI, Advanced for detailed analysis
- Select your ROI type - Investment, Marketing Campaign, or Business Project
- Enter your costs and returns - Initial investment, ongoing costs, and expected gains
- Set the time period - For annualized returns and payback analysis
- Click Calculate to see comprehensive ROI metrics and insights
Calculation Mode
ROI Type
Investment Details
Optional identifier
Costs & Investment
$
Upfront cost or purchase price
$
Fees, maintenance, operating costs
Returns & Gains
$
Final value or total revenue generated
$
Compare Multiple Investments
Add additional investments to compare ROI side-by-side
📊 What Is ROI (Return on Investment)?
Return on Investment (ROI) measures the profitability of an investment relative to its cost. It's expressed as a percentage and helps compare the efficiency of different investments. The basic formula is: ROI = (Gain - Cost) / Cost × 100
💰 ROI Formulas Explained
- Basic ROI: (Final Value - Initial Cost) / Initial Cost × 100
- Annualized ROI: ((1 + ROI)^(1/years) - 1) × 100 - Shows yearly equivalent return
- CAGR: (Final/Initial)^(1/years) - 1 - Compound Annual Growth Rate
- Real ROI: Nominal ROI adjusted for inflation
- Cash-on-Cash: Annual Cash Flow / Total Cash Invested (for real estate)
📈 Understanding Your Results
- Total ROI: Your overall return as a percentage of investment
- Annualized ROI: Yearly return rate for comparison across time periods
- Payback Period: Time needed to recover your initial investment
- Net Gain: Total profit in dollars after all costs
- Risk-Adjusted Return: Return compared to risk-free alternatives
💡 ROI Benchmarks by Investment Type
- Stock Market (S&P 500): ~10% average annual return (7% after inflation)
- Real Estate: 8-12% including appreciation and rental income
- Bonds: 4-6% for investment-grade bonds
- Marketing Campaigns: 5:1 revenue-to-cost ratio is considered good (400% ROI)
- Business Projects: 15-25% ROI typically required for approval
⚠️ Important Considerations
- Time Value of Money: $100 today is worth more than $100 in 5 years
- Risk vs Return: Higher returns usually mean higher risk
- Hidden Costs: Include all fees, taxes, and opportunity costs
- Liquidity: Some investments are harder to sell quickly
- Past Performance: Doesn't guarantee future results
🔗 Save & Share Your Calculation
Your calculation is automatically saved in the URL. You can bookmark this page to save your ROI analysis, or use the Share button to send it to colleagues or advisors. All values will be restored automatically.
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Last updated: November 7, 2025
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